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Article I saw kept referencing the Saudi rep., from it I took he was speaking from OPEC.
I think exporting oil at this point is useless as the market is already flooded. We should have learn from the exporting of NG debacle but missed the massive boat on that one and will enter the market after other countries have cornered it.
yes, Saudi spoke for them. but, the realities of what happened at that meeting were a bit different.
i am not really trying to run down what you said. i've just read a ton of "assertions" by people especially ones that are not in the business to what is happening and why. i kind of bang head against the table.
many, many people do not understand what globally traded commodities really means.
The Saudis are opening the valves to defend market share, just as they have before.
Are the stakes are different now? Everybody asked in 85 how long the Saudis could flood the market. What happens in Venezuela? What will the Soviets/Russians do?
Past remains prologue in most contexts. In 1985 when Iran and PDVSA played quota games the Saudis decided to make a point to defend market share -- opened up the valves to regain market share, driving prompt NYMEX crude to $10/bbl in July 1986. Kingdom cash flow remained flat but barrel throughput went thru the roof. The same game is in play almost 30 years later, and the Saudis still are the swing producer and have the hammer.
We're in a different position now because Bakken & Alberta can serve core economic markets far more efficiently and interest rates are so low that investment risk is really cheap.
Two fundamentals remain constant: never bet against the Saudis and never, ever, ever ask a mortgage broker to opine on anything outside of his rice bowl.