You might be missing the point, just a little. Saudi Aramco's breakeven production cost is, realistically, $40/bbl; optimistically $35/bbl. Best case scenario (for them), if the U.S. fills the SPR, it costs the Saudi's $1.4B in losses, and it props up U.S. producers. That may only last for a week, but the Saudis' cash reserves aren't infinite. They wanted to hurt Iran, drive U.S. (shale, in particular) competitors out of the market, and hurt Russia.
Say what you will, but the guy is definitely a winner.
Trump literally is the only man smart enough to maneuver this madness. What a genius, and I say this non-ironically.
Agree. Genius.
Fellas,
The SPR hold 727m bbls. There are currently 635m bbls in storage. Leaves about 92m bbls of usuable space. ....which is anything but "plenty" of room.
Also, this does not "hurt" SA or Russia in any way. It just allows us to store an additional 90m bbls of oil at a cheaper price.
Can we lay off the circle jerks.
You might be missing the point, just a little. Saudi Aramco's breakeven production cost is, realistically, $40/bbl; optimistically $35/bbl. Best case scenario (for them), if the U.S. fills the SPR, it costs the Saudi's $1.4B in losses, and it props up U.S. producers. That may only last for a week, but the Saudis' cash reserves aren't infinite. They wanted to hurt Iran, drive U.S. (shale, in particular) competitors out of the market, and hurt Russia.
Go back to reddit.
Holy shit, did this actually happen? I was worried about this oil dump.
Yes, it was in Trump's speeches
Fvck yes!
^ underrated reply
That man is brilliant. Two birds one stone.
one scoop per gender
He mentioned during his first (?) covid task force presentation. He said, if they want to sell it so cheap good. He bought it all.
Was that the right move? I don’t know how all of this works
Yes. Since he bought it all cheap it gives Trump leverage to release some if gas prices are too high and keep it stored if prices are too low.
Buying crude oil at 1995 prices is rarely a bad investment. You don't need to be Alan Greenspan to wrap your coconut around that.