Putin Launches "War On US Shale" After Dumping MbS & Breaking Up OPEC+

How is Trump "threatening" nations not to buy Russian arms?
For sure, there's an issue with the NATO member Turkey doing
this as it's in bad faith. But what nations are being "threatened"?

 

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Good Luck with that Theddy - BTW Who was it stuck that Kirpin into the Frump's back ?


So here we have yet Another typical Puerile analysis offered up by Thedimon, strong on Insult but
totally Ignorant as to the Realities of doing business in a hostile Machiavellian International climate.

He should be made aware, that as, "anyone who has even a little bit of brain in their heads" Knows,
........ Owe the Bank a couple of thousand dollar$ You worry about it. Owe the BANK Multiple Billion$,
................................................................................................................................................................................................... & THEY worry about it

Now "anyone with a score of even few points above room temperature" Knows, that Oil Fracking
...................... involves massive Capital, and that that Capital comes from Multi Billion Dollar Bank Loans

And as - "anyone with even an half an ounce of Grey Matter" - should clearly understand, when these
Soupy Frackers default and can't come up with the ca$h to meet their Financial Obligations, it is NOT
.............. "the oil companies who will put a fence around the extraction area," It will be the BANKs !

........ And this situation is the very definition of, and carries the Obligations of, the term BANKRUPCY !

And those Oil Companies will have their assets and their infrastructure seized by the Banks who will
have to attempt to recover their losses incurred by absolutely Massive BAD DEBT. - It will all go to
the Highest Bidder which will be at a Rock bottom Low given the present Climate for Frack Crap


But "anyone with a brain even approaching normal cognitive ability" realizes, that the residual
problems created by these Humongous Bankruptcies will be even more of a threat to the Banking
and Business Interests. Because these Massive BAD LOANs will now threaten the very solvency
of the Banks who made them. Especially given the present climate of TOTAL Economic ShutDown,
................................................................................................................................. and Massive FED bailouts, due to COVID 19


Now "not one of YOU self proclaimed Pundits of Machiavellian Economic Theory" has figured
it out ! - It's absolutely Hilarious ! - Your (trustworthy tin pot tyrant ally) Saudi Arabia & and
.............................................. that ( XSatan) Putin, were in this together ! Surprize Surprize !
......................................................................................... MBS wants done with US Shale Oil every bit as much as Putin does !

........ & the irreparable damage has already been done.--

For even if the Price of Oil were to return tomorrow, US Shale will not be selling their product.
........................................................... It is going to take months for any real Demand to return into the Market.
........................................................ by that time what's left of US Fracking will be like a Dead Fish on the Beach

& so here we see Trump, and his Deep State Puppet Masters, stunned, wandering aimlessly about
....... .................... under the covers of a near silent MSM, with an Arabian Kirpan sticking out of his back,
......... ...................................................... and with his hat in his hand going to Putin - "Ah gee wiz fellas play fair"
..............................................................................................................................................................................
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$1 Oil: Saudi Arabia's Attempt To Crush U.S. Shale
https://oilprice.com/Energy/Energy-General/1-Oil-Saudi-Arabias-Attempt-To-Crush-US-Shale.html

Review
Trump Asks Putin for Help in Oil War
Full Article Here:
http://www.informationclearinghouse.info/54095.htm


Trump (with hat in hand), Putin ( with broad smile )
Will Discuss The End Of U.S. Shale Oil

Read Full Article:
https://www.moonofalabama.org/
-------------------------------------------------------------

So Putin say's, "I'll get right on it Donald, I'll arrange negotiations with the Saudi's, we'll see what
we can do. " And then Immediately out comes the Saudi/Russki dog & pony show - DELAY !

OPEC Meeting Is Delayed as Saudi and Russian Tensions Flare
The meeting, planned for Monday, had buoyed hopes for a quick deal
to end the turmoil in oil markets.
https://www.nytimes.com/2020/04/04/business/coronavirus-opec-russia-oil.html

--------------------------------------------------------------------

A Deal will eventually be made and it will include a substantial drop in production and maybe even the
beginning a a return to a more stable and reasonable Price. But that Production & Price will be just
........................................................ a few cents BELOW what it will take to made Shale Oil a profitable enterprise.

And as already shown, and proven to all "But the most obstinate Block Heads" the DAMAGE has
already been done and It will take months for any DEMAND to return to the equation




-----------------------------------------------------------------------------
REVIEW:
PUTIN Unleashes Strategic Hell On The US

Because if there was ever a moment where Putin and Russia could inflict maximum pain
on the United States via its Achilles’ heel, the financial markets and its unquenchable thirst
for debt, it was this month just as the coronavirus was reaching its shores.

https://www.strategic-culture.org/news/2020/03/15/putin-unleashes-strategic-hell-on-us/

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.

 

Sorry, too long, too colorful, too painful to read.
I ain’t reading this garbage.
Want a discussion? Write in proper font.

 

You're sorry - But I'm NOT ! ... ..
Far easier to dissect an Insect when it's NOT squirming
..................................................................... and that is all of what your argument appears to me to be

I don't need a discussion with you in order to pull your weak wrist'd - Case apart
.............. Your Ridiculous Assertions and Vapid Statements are all that is necessary
....................................................So Go back to sleep as you are in danger of being Anesthetized

& remember truth is always painful to one who lives in a Lie
.

 

Hey Theddy !
Why don't just you Chill Out for a bit
and get YOUR buddy Zoomy to take YOU for a Helicopter Ride ?
................................................................
........................................................... I have been patiently waiting for the opportunity to use that one

 

If you are replying to the guy with the colors - you can put him/her on ignore.
I had to do so because I kept asking them to stick to a common font/color as
it was hurting my eyes. They ignored me. My screen is now cleaned up.

 

Good idea.
Garbage is gone now!
I can’t believe there are members that actually read that posters messages.

 

If you're referring to that Potemkin village clown Eadora ....just put on ignore.


There should be an age restriction on here....no one under 16 allowed.

 

I've had that account on ignore for some time.....kept PMing me with its dribble.

 

.

Well fellas Now
..
..... Thedimon ... Zoomy ... &the Pooh

You Know like what they say
"If You Can't Stand the Heat, - & Get the HELL Out Of The Kitchen !"

Take the Yellow road and Scurry under YOUR - Rock or Rug or wherever,
I've driven YOU off the Table & YOU are now out of my way, and I no longer
....................................................................... have to endure YOUR inane Ridicule & Insult

I see YOU but YOU can't see me. An Excellent arrangement I am sure .
& be assured, I'll be pulling YOUR case apart and Exposing YOUR Hypocrisies
............................................... & Lies with the same Flair & Panache as always ...

Oh! & BTW
Wherever it is that you've stuffed YOUR Heads
to keep Out the Light, be sure to keep the Sand
out of YOUR ears, they say it can get into the Brain
that way and further GUM-UP the Works
..... ...

 

Why do you make your posts impossible to read without a black strobe light?

Here Is The "Secret Weapon" That Allowed Tiny Oil Producer Mexico To Defy Giant Saudi Arabia

Mexican oil hedge is threatening to collapse not only the production cut deal, but OPEC itself​

After the Saudis and Russia cobbled a historic OPEC+ oil production cut which at 10 million b/d was the biggest ever, the rest of OPEC+ was supposed to applaud the two oil exporting giants who agreed to cut 23% of their, and everyone else's output, and fall in line agreeing to the terms that were imposed upon them in hopes of sending the price of oil slightly higher, because as a reminder even the agreed upon 10 million cut would do nothing to balance an oil market crushed by a record 36 million b/d drop in oil demand.

That did not happen because one country dared to stand up to not just Saudi Arabia, but also Russia and the rest of the OPEC cartel.

Mexico, which pumps a relatively tiny 1.75 million b/d and which would have been forced to cap its output some 400,000 barrels lower to comply with the deal, but, the most Mexico would agree to was a minuscule 100k b/d cut - a number that is completely meaningless in the grand scheme of the oil market - yet one which openly defies Saudi Arabia which staked its reputation as OPEC's most powerful nation by guaranteeing that every OPEC member would agree to the 23% production cut.

This has not yet been resolved as of late on Saturday, with Mexico’s Energy Minister Rocio Nahle refusing to budge from her insistence that the country could only cut output by 100,000 barrels a day, 300,000 less than its fair share of 23% reductions by everyone in the OPEC+ group. On Friday morning, Mexican President Andres Manuel Lopez Obrador said he had resolved the matter in a phone call with Trump. Trump agreed to an additional 250,000 barrels a day of cuts on Mexico’s behalf. But that was not enough for the Saudis as they fear that all the other smaller cartel members would risk cheating and excess production, who would feel that it is unfair for Mexico to get preferential treatment.

Two days after oil surged on hopes of a 10mmb/d cut, the deal that was supposedly finalized on Thursday has yet to emerge, and come Sunday evening when trading reopens, Brent could plunge as the production cut ends in disarray.

But why is Mexico risking the collapse of OPEC, and another sharp plunge in oil prices, by refusing to comply with the deal - after all if Mexico cuts just another 250K barrels in output from its adjusted total it will unlock higher prices, or at least avoid an even sharper plunge in the price of oil. Sure, it may not balance the market, and $50 Brent won't come back for a long time, but avoiding another dramatic plunge in oil would be worth the cut, right?

Well, no because while that would be the reasonable economic equation for all other OPEC members, Mexico has always had what Bloomberg dubbed a "sector weapon" up its sleeve, one which incentivizes Mexico's president to either get his way, or watch as oil craters... and get paid billions.

We are talking of course about Mexico's now famous annual oil hedge, which in recent years has manifested itself mostly in the form of billions of dollars spent on oil puts.

Mexico has spent an average $1 billion buying the hedges. The hedge first appeared in 2001, when Mexico made a tentative showing, spending just $217.3 million on put options, a fraction of the approximately $1 billion a year it would spend later. In 2003 and 2004, with oil prices rising, the country opted not to hedge at all. The strategy came into its own in 2005: Mexico has hedged every year since without interruption, giving it a unique peace of mind that should a worst case scenario happen, it would be able to sleep soundly at night. Agustín Carstens, who later became head of the central bank, was finance minister when a massive $5.1 billion payout came in 2009; some government officials also refer to the annual oil bet as "the Agustínian hedge"; then in 2015, after the OPEC Thanksgiving massacre of 2015, the hedge made $6.4 billion and another $2.7 billion in 2016 after Saudi Arabia waged another failed price war aimed to crushing US shale producers.

Mexico's annual spending on its hedge with Wall Street banks is shown in the chart below.

​

Only Mexico had the foresight to hedge a price shock down, and that is giving Mexico unprecedented leverage to demand... pretty much anything, even preferential treatment from its OPEC peers.

Leftwing populist President Andres Manuel Lopez Obrador pledged to revive oil production via state-owned Pemex. Slashing 400,000 barrels a day to comply with the OPEC+ deal, rather than the 100,000 barrels a day that Mexico has counter-offered to Saudi Arabia, would put on hold his ambitious plan to return Pemex to its former glory.

But a token 100,000 cut - one which flaunts the Saudi demands for equal sacrifice by all the cartel members - is unacceptable to Crown Price MbS, hence the Mexican standoff continues.

So, there is much more going on here than Putin trying to shut down US Shale.

 

This was what I was saying earlier. We can just take a look at what the US did to Russia's GDP though.

 

Less than $2 trillion. LMAO, the US federal budget could buy everything russia's little economy produces in a year.

 

Yes FED can print money, but how many countries want to buy this toilet paper? Do you think switching-on printing press will solve all problems, or will make life for all people on the earth better? Do you think if USA it is 1/4 of world GDP it`s mean 1/4 of world goods made in USA?

 

What the Hell makes YOU think
that Putin needs a -Trillion Dollar WRENCH - to take out a -Trillion Dollar Machine ?
He can Smash the Works with a WRENCH that cost him all of $4 dollars & .73 cents.
.......................................................... or the price of a plane ticket to screw over YOUR Saudi Morons.

He just has to toss his SPANNER into the Gears & Pulleys of US Shale at the right
Time and in the right Place - & Smash'O Crash'O - US Shale comes to an
abrupt and grinding STOP - & the US Bank$ now find themselves in the Oil Business.
But they won't be selling any Oil at a Profit in the foreseeable future with the price and
.................................................................................................................................. the demand for Oil in the Sewer.

The smart ass Bank$ters will be busy trying to figure out how to write down Bad Loans,
while hemorrhaging large amounts of Ca$h and looking for Bail Outs from their Favorite
............................................................................................................................ Milch Cow, the American Tax Payer
-....................................................................................................................................--- That's YOU Fellas


So funny ! ..............
Watching You guys Beating YOUR Chests like a less than Informed Simian, wired on
his Testosterone & Steroids - "USA strong Putin weak !" & "Putin can't do this !" -
and "Putin can't do that !" - NEWS to Yah GUYs ! - it's already a "fait accompli "
................................... SO FUNNY ! ...
..
---------------------------------------------------------------------------
U.S. Banks Prepare
To Seize Energy Assets As Shale Boom Goes Bust
http://www.stationgossip.com/2020/04/us-banks-prepare-to-seize-energy-assets.html

.---------------------------------------------------------------------------
Oil Price War Came at the Worst Possible Time,
And a Truce Between Moscow and Riyadh Can’t Come Too Soon

https://www.rt.com/op-ed/485272-oil-war-saudi-arabia-russia/
---------------------------------------------------------------------------

.

 

Wholesale Gasoline Hits 12 Cents A Gallon In Midwest

"No one is going to be making money..."

According to Bloomberg, gasoline in Fargo, North Dakota has hit 12 cents a gallon at 'the rack' - the wholesale market where gas station owners buy fuel before marking it up at the pumps - which have become "little more than makeshift storage for ballooning inventories."

​

Refineries may be selling gasoline "at a break even or even a loss."

 

That Saudi Arabia and Russia chose this spring to get into an oil war, unaware that within weeks that the global economy would shutter awash in so much oil that you have to pay folks to take it, may turn out to be the biggest blunder since Hitler invaded Russia.

NEGATIVE OIL PRICES: Less Than Zero.

​

To get paid to take the oil, you’d have to take delivery of at least 1,000 barrels of oil in Cushing, Oklahoma. Each oil barrel contains 42 gallons of crude, which in turn can be refined to 19-20 gallons of gasoline, 10 gallons of diesel, and various amounts of other petroleum products.

 

An Article in the the Premier Economic News Journal out of England concludes.
That in a CRASH like this, everybody takes a hit, but Russia will be largely Immune to its depredations.

Unfortunately you need a paid subscription for access to the full article but their basic premise is this:
Due to the hamfisted imposition of US Sanctions, Russia has built a "Fortress Economy"
.......................................................................................................................................... uniquely resistant to sudden shocks

++++++++++++++++++++++++++++++++++++++++++
Russia’s Economy Is Isolated From The Global Rout
https://www.economist.com/europe/2020/03/26/russias-economy-is-isolated-from-the-global-rout
From The Article:

VLADIMIR PUTIN probably feels sufficient. The Russian economy is expected to be in crisis, but it is not
&
Yet, even as the richest countries in the world are in turmoil, taking on large debts to cushion the blow,
the Russian economy is showing little sign of panic. It is not because Russia has diversified, defeated
corruption, protected property rights or stimulated competition, investment or growth. He did nothing
about it. On the contrary, the Russian economy is less sensitive to the shock because it has already
self-isolated in the past six years.
&
......the West has imposed sanctions on Russia and Russia has imposed sanctions on the West. Since
then, the objective of Russia’s macroeconomic policy has not been to stimulate growth but rather
to build a fortress economy that could withstand a severe shock. This policy was based on a fiscal
rule in 2017 that required the budget to balance with an oil price slightly above $ 40 per barrel. Anything
above this figure was channeled into a fund for rainy days which had reached 7.3% of the GDP
March 1st.....As a result, Russia is now on one of the world’s largest reserves of gold and foreign exchange
&
We are protected against external shocks and foreign enemies because we have modern weapons
and rockets, but also because we have gold and reserves. ”
&
Of course, the Russian economy remains highly dependent on the prices of energy and raw materials.
The dramatic fall in the price of oil, caused in part by Russia’s own decision to break its deal with
OPEC producers, could deprive the government of about 2 billion rubles ($ 25 billion) this year
&
.....for now, Russia has more than enough reserves to see it in the next few years. The fall in the value
of the ruble limited the damage to its public finances caused by the fall in the price of oil. Western
sanctions have also made it unnecessary, in many cases,
&
Cut off from the international financial markets since 2014, Russian companies have had no choice
but to deleverage. While Western companies took advantage of low interest rates and went into debt,
Russia’s corporate debt became GDP fell below 50% while debtGDP the ratio is well below 20%.
Since most of Russia’s exports are basic, it is also less vulnerable to disruptions in complex global supply chains.
&
Falling energy prices are a problem for countries reliant on oil and gas extraction, but are not the disaster
they might intuitively seem, with risk analysts holding off from downgrading Russia while eyeing Kazakhstan
with more concern. Russia has also become more autonomous. Its counter-sanctions imposed on food
imports EU have boosted national agriculture, dropping the share of imported food by one third in the past
five years to just 24%.
&
Mr. Putin announced his own response to the virus, a pale imitation of the vast economic packages
announced
by Western governments .......Instead of a lockout, Putin declared a week’s vacation in Russia. In return,
small and medium-sized enterprises will benefit from a tax holiday for companies for six months (VAT. still
has to be paid). Social taxes that companies pay on behalf of their employees are cut in half to 15%.
&
Those who fall ill and lose more than 30% of their income may delay the repayment of mortgages and certain
other loans
To offset the blow to the national budget, Putin increased the tax on dividends received from offshore
operations from 2% to 15%, thereby levying a new tax on the wealthy.

This article appeared in the Europe section of the print edition under the title “Isolationomics”

+++++++++++++++++++++++++++++++++++++++++++++++++

Also - From EUROMONEY Article:
Russia Shows Resilience To Oil Shock While Kazakhstan Wobbles
https://www.euromoney.com/article/b...ilience-to-oil-shock-while-kazakhstan-wobbles
+++++++++++++++++++++++++++++++++++++++++++++++++

.

 

Throughout it's history, Russia has been attacked by the West. They had what Europe didn't have, land and resources. Putin hoped the trend had stopped with the fall of the Soviet Union, but with the attack on Serbia he realized he had to rebuild Russia's military. Later with the coup in Kiev and sanctions, he realized that Russia must turn East, and that the attacks from the West will never cease. Putin also stopped all imports from the EU and started rebuilding and developing all of Russia's industries.

The credit for the new self sufficient and fortress Russia belongs to us. Bravo Washington! At least you did some good in the world.


This is from the Durant:

Oil prices plummeted after the meeting in which Opec, Russia and other countries failed to agree on proposed cuts of 1.5m barrels a day. Reports of the meeting suggested that Saudi Arabia had tried to “strong arm” Russia, with one industry analyst commenting: “We have just witnessed the perils of backing Putin into a corner.”​

https://theduran.com/oil-price-war-started-after-shouting-match-between-putin-and-mbs-video/

 

Eadora - I wonder what happened to the 3 ostriches? I haven't received a response to my post?

 

..

.. I warned them ! - I told them ! - I almost pleaded with them ! - If you are going to Avoid
.. simple yet uncomfortable FACTS that contradict YOUR cherished yet biased World View,
"That both YOU & YOUR Nation are somehow Exceptional and beyond the Human Norm"


Then for God's Sake ! Don't let the Sand of that Absurdity get into YOUR ears, as it It will,
..,,,,,,,,,,,,,,,,,,.. without fail migrate to the Brain and result that dreaded Mental Disease we know as
.......................................................................................................................................................................... " Willful Ignorance "

............................................................................. Which in turn will cause the unbearable SQUEAK of

............................................................................... ..

.............................................................. Which in turn again, will make Rational Thought & Civil Discourse
.............................................................. all but IMPOSSIBLE - The victim either Snaps into a Raging & Shallow
........................................................................... Ad-Hominem, or he hits the Yellow Road and withers into
............................................................................................................................................................................................ SILENCE

.