Russia says it can deal with pain of a Saudi oil price war. “Russia’s finance ministry said on Monday that it would draw from its $150bn national wealth fund in order to boost budgetary spending, while oil prices remained at between $25 and $30 a barrel,” seems they are betting on a long term increase in prices after the next decade which is. odd from a climate point of view.
FT 9th March 2020 read more »
America’s shale producers already had a profitability problem. It just got a lot worse. At a stroke, Saudi Arabia and Russia and their battle for market share have made almost all U.S. shale drilling unprofitable. Only five companies in two areas of the country have breakeven costs lower than the current oil price, according to data compiled by Rystad Energy, an Oslo-based consultancy.
Bloomberg 9th March 2020 read more »
U.S. shale producers on Monday rushed to deepen spending cuts and could reduce future production as oil prices tumbled after OPEC’s decision to pump full bore into a global market hit by shrinking demand due to the coronavirus outbreak.
Reuters 9th March 2020 read more »