Saudi Arabia triggers an oil price crash — $20 oil is possible

[IroNat]

https://finance.yahoo.com/news/saudi-arabia-triggers-an-oil-price-crash-goldman-sachs-warns-20-oil-is-possible-232942042.html

"Saudi Arabia’s decision to cut prices puts added pressure on an oil market already reeling from a global economic growth slowdown at the hands of the coronavirus outbreak. West Texas Intermediate crude has plunged about 48% year-to-date. That has put immense pressure on the share prices of oil majors such as Exxon and Chevron as well as drillers like Transocean.

Goldman Sachs is now out with a dire warning: $20 a barrel oil."

[IroNat]

Is this a strategy by the Saudis to crush the competition, or do they just need the money?

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Saudi Arabia increase oil output to record high

https://apnews.com/1f05815ec48fccd8ffa6b4dc3f4337c8

[IroNat]

Saudis going for broke or going broke?

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Saudi Aramco says it will increase oil production capacity (to 13 million barrels per day)"

https://apnews.com/2620b12074954047023c5f7740591cf9

"Saudi Arabia’s oil company Aramco said Wednesday it will increase production capacity to 13 million barrels per day, up from 12 million per day, part of a strategy to dominate market shareamid a slowdown in demand due to the outbreak of a new virus."

[SOMEPARTS]

We are and have been in a financial/trade war with China, Russia and Iran and oil is a huge part of that.



Also this might be distraction them:

https://www.aljazeera.com/news/2020/04/coronavirus-widespread-saudi-royal-family-report-200409070130026.html

[B_B_C]

https://www.theguardian.com/world/2020/apr/20/oil-prices-sink-to-20-year-low-as-un-sounds-alarm-on-to-covid-19-relief-fund


Oil prices dip below zero as producers forced to pay to dispose of excess

US crude has negative value for first time in history as stockpiles overwhelm storage facilities

[IroNat]

It's a temporary situation but will have serious consequences for many oil companies.