Oil To Make It Or Break It This Month!

[Economy 52,854]

https://www.google.ca/amp/s/www.yahoo.com/amphtml/finance/news/saudi-arabia-willing-crash-oil-155257634.html

 

With oil storage at a record 3 Billion barrels of oil and still mounting as the eorld over-produces, the only reason oil prices have gone up recently is due to speculation OPEC will finally agree to cut

 

However recently ther s been a dip again and thats because Iran still refuses to cut saying they should be exempt because they are only recovering output back to pre-sanctions level

 

Other Nations besides Iran refuse to cut and Saudi Arabia is not having it saying they will raise production by another 1 Million barrels a day if instead of co-operation we get more market sharing fighting

 

The meeting at the end of the month will determine if prices crash again or finally gain stability.

[Chromatislaps 34,854]

what does this mean? That we can either have a stable economy or a wallstreet crash like in 1929?

[The Fame Joanne 5,985]

Well good if it gets cheaper. And I don't feel sorry for those countries honestly 

[Noah 27,418]

5 minutes ago, Derpplause said:

what does this mean? That we can either have a stable economy or a wallstreet crash like in 1929?

 

[FATCAT 60,888]

Can't wait for Gas to get dirt cheap. We need another Route 66 level travel expansion in the US.

[Economy 52,854]

1 hour ago, Derpplause said:

what does this mean? That we can either have a stable economy or a wallstreet crash like in 1929?

No...

 

make it or break it for the oil industry specifically

[Economy 52,854]

59 minutes ago, The Fame Joanne said:

Well good if it gets cheaper. And I don't feel sorry for those countries honestly 

My Country lost its budget surplus because of this!

 

We got a tiny $2.6 Billion surplus then went back to deficit as soon as oil crashed  

 

My Province isnt very affected by oil jobs wise since were manufacturing and financial corporate based but still. No good  

[The Fame Joanne 5,985]

25 minutes ago, Economy said:

My Country lost its budget surplus because of this!

 

We got a tiny $2.6 Billion surplus then went back to deficit as soon as oil crashed  

 

My Province isnt very affected by oil jobs wise since were manufacturing and financial corporate based but still. No good  

Oh sorry to hear that 😕

You're from Canada right?

I was thinking more about countries like Saudi Arabia with inhuman laws, whose economies rely almost completely on oil

[Luc 4,776]

Hihi all I can think of is the destabilisation of Putin's Russia whenever I think of oil prices going down. Hope it stays low, so that Putin will have no more money to commit war crimes, invade countries, refresh their nuclear arsenal, sponsor the North Korean government, etc.

[Economy 52,854]

1 hour ago, The Fame Joanne said:

Oh sorry to hear that 😕

You're from Canada right?

I was thinking more about countries like Saudi Arabia with inhuman laws, whose economies rely almost completely on oil

Yeah Canada

 

Economy wise only 2 or 3 Provinces are highly dependant on oil for jobs. Mine (Ontario, the most populated) is not one of them

 

But we still used to get like $30 Billion a year from oil revenue again

 

Because we are high cost producers most of our companies are either taking losses or making very little money so the revenue from oil is almost down to $0

 

Our deficit is now like $30 Billion annually or about 1.5% of GDP

 

I guess thats a low deficit but still, the point is it ruined our surplus plans to repay debt even though its not very high

 

We actually have more oil and produce more oil than most Opec Nations. We have 175 Billion barrels and thats not counting new shale discoveries without official estimates yet and new technology believed to soon double recovery rates in oil sands

 

We currently have the 3rd largest oil reserves but within 5 years Canada may jump to #1

[Economy 52,854]

59 minutes ago, Luc said:

Hihi all I can think of is the destabilisation of Putin's Russia whenever I think of oil prices going down. Hope it stays low, so that Putin will have no more money to commit war crimes, invade countries, refresh their nuclear arsenal, sponsor the North Korean government, etc.

Thats the one positive of all this

[Luc 4,776]

3 minutes ago, Economy said:

Thats the one positive of all this

What about China and the EU, that are desperately in need of high economic growth? Rising oil prices could harm that economic growth quite a lot. I remember in 2014 (just after it suddenly declined) the economic growth year-on-year was like 0,3% higher thanks to the oil prices.

[Economy 52,854]

5 minutes ago, Luc said:

What about China and the EU, that are desperately in need of high economic growth? Rising oil prices could harm that economic growth quite a lot. I remember in 2014 (just after it suddenly declined) the economic growth year-on-year was like 0,3% higher thanks to the oil prices.

True

 

Although if Oil rises to say $55 that may be even better...

 

Thats not high enough to put pressure on EU or China

 

But its a huge boost to North America because at $55 both shale and even much of the oil sands are profitable and can expand again

 

The US ($17 Trillion) + Canada $2 Trillion + Mexico $1 Trillion is a $20 Trillion economy

 

All 3 North American Countries have a major oil industry that could boost its economic growth with oil only $10/barrel more than it is now

 

On the other hand $55/barrel is not gonna save Russia or OPEC nations if it persists for a long time

[Luc 4,776]

45 minutes ago, Economy said:

True

 

Although if Oil rises to say $55 that may be even better...

 

Thats not high enough to put pressure on EU or China

 

But its a huge boost to North America because at $55 both shale and even much of the oil sands are profitable and can expand again

 

The US ($17 Trillion) + Canada $2 Trillion + Mexico $1 Trillion is a $20 Trillion economy

 

All 3 North American Countries have a major oil industry that could boost its economic growth with oil only $10/barrel more than it is now

 

On the other hand $55/barrel is not gonna save Russia or OPEC nations if it persists for a long time

The North American economies are so diverse, though, that the oil crash barely had an impact on economic growth. North America can do without, but it would be good to see countries like Russia, Saudi Arabia, Brazil and Venezuela finally go through regime change.

 

I think the US should just stay neutral in this. Almost all of their oil is consumed by themselves, which makes the impact of oil prices negligible - all money stays in the US economy. The lower prices and thus smaller oil sector is compensated by higher consumer spending in other areas and thus profits other sectors. It makes the US economy also a lot more ready for the future, as, even with high oil prices, the green sector will overtake the oil sector eventually.

[DeanWinchester 41,390]

2 hours ago, Economy said:

My Country lost its budget surplus because of this!

 

We got a tiny $2.6 Billion surplus then went back to deficit as soon as oil crashed  

 

My Province isnt very affected by oil jobs wise since were manufacturing and financial corporate based but still. No good  

Ontario has been on the deficit for a few consecutive years now though right?

If Alberta further declines, the whole nation's economy will still be affected