Saudi Arabia may go broke.

Rockstar · 08-25-15, 04:19 PM

What do they say over there, Ins'allah god is great?

Quote:

by Ambrose Evans-Pritchard
If the oil futures market is correct, Saudi Arabia will start running into trouble within two years. It will be in existential crisis by the end of the decade.

The contract price of US crude oil for delivery in December 2020 is currently $US62.05, implying a drastic change in the economic landscape for the Middle East and the petro-rentier states.

The Saudis took a huge gamble last November when they stopped supporting prices and opted instead to flood the market and drive out rivals, boosting their own output to 10.6 million barrels a day (b/d) into the teeth of the downturn.

Bank of America says OPEC is now "effectively dissolved". The cartel might as well shut down its offices in Vienna to save money.

Read more: http://www.afr.com/business/energy/o...#ixzz3jrcKq1u3
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mapuc · 08-25-15, 06:32 PM

Is this true ?

Thinking of all these conspiracy stories and all these stories which has debunked them

Just curious

Markus

Platapus · 08-25-15, 06:59 PM

They have nothing to worry about. The US will bail them out.

The Saudis know where a lot of American skeletons are buried.

Onkel Neal · 08-25-15, 07:22 PM

Haha, ok, let me get my tinfoil hat.

At some point, the Saudis will end up in a bind, they are driving the price of their only real commodity down, and there are more and more reserves being found, in Canada, in the Arctic. Basically, right now they are effectively transferring their treasure to the West at cut rate prices.

em2nought · 08-25-15, 08:14 PM

Bank of America are hardly experts on financial matters.

Oberon · 08-25-15, 09:53 PM

It's a crisis of their own making, they're literally cutting their nose off to spite Iran.

Still, this was going to happen one day, it was inevitable...if not because of reduced demand then because of Peak. The Saudis have a helluva lot of cash squirreled away in assets and such. I think I read somewhere that they have a reserve of $900b. Of course, with the lifestyle that their Princes lead that's probably enough to last a week...

But yeah, Platapus is right, the US will bail them out eventually, because no one in the GOP would stomach the US siding with Iran on anything so the US will have to side with Saudi Arabia against Iran in the coming Middle Eastern cold war.

mapuc · 10-26-15, 02:27 PM

And I who thought their bank account was overfilled with billions and billions of dollars from all this oil.

http://www.independent.co.uk/news/wo...-a6706821.html

Quote:

Saudi Arabia’s cash reserves are in free-fall and the country could have only five years of financial assets remaining due in large part to the fall in oil prices, according to a report by the International Monetary Fund (IMF).

Markus

vienna · 10-26-15, 02:49 PM

Couldn't happen to a nicer bunch of guys...

<O>

Betonov · 10-26-15, 03:04 PM

They can always melt their Lamborginis into gold bars

Dowly · 10-26-15, 03:12 PM

Quote:

Originally Posted by Betonov

They can always melt their Lamborginis into gold bars

This guy got the right idea.

Unfortunately, it was just yellow paint and not gold as he soon found out.

Betonov · 10-26-15, 03:16 PM

Lamborghini, Ferrari, Fiat... all Italian

08-25-15, 06:59 PM	#3
Platapus Fleet Admiral Join Date: Oct 2006 Posts: 19,360 Downloads: 63 Uploads: 0	They have nothing to worry about. The US will bail them out. The Saudis know where a lot of American skeletons are buried. __________________ abusus non tollit usum - A right should NOT be withheld from people on the basis that some tend to abuse that right.

08-25-15, 07:22 PM	#4
Onkel Neal Born to Run Silent Join Date: Jan 1997 Location: Cougar Trap, Texas Posts: 21,383 Downloads: 541 Uploads: 224	Haha, ok, let me get my tinfoil hat. At some point, the Saudis will end up in a bind, they are driving the price of their only real commodity down, and there are more and more reserves being found, in Canada, in the Arctic. Basically, right now they are effectively transferring their treasure to the West at cut rate prices. __________________ SUBSIM - 26 Years on the Web

08-25-15, 08:14 PM	#5
em2nought Ocean Warrior Join Date: Mar 2004 Posts: 3,485 Downloads: 0 Uploads: 0	Bank of America are hardly experts on financial matters. __________________ em2nought is ecstatic garbage!

10-26-15, 02:49 PM	#8
vienna Navy Seal Join Date: Jun 2005 Location: Anywhere but the here & now... Posts: 7,711 Downloads: 85 Uploads: 0	Couldn't happen to a nicer bunch of guys... <O> __________________ __________________________________________________ __

08-25-15, 06:32 PM	#2
mapuc CINC Pacific Fleet Join Date: Sep 2003 Location: Denmark Posts: 20,535 Downloads: 37 Uploads: 0	Is this true ? Thinking of all these conspiracy stories and all these stories which has debunked them Just curious Markus

08-25-15, 09:53 PM	#6
Oberon Lucky Jack Join Date: Jul 2002 Posts: 25,976 Downloads: 61 Uploads: 20	It's a crisis of their own making, they're literally cutting their nose off to spite Iran. Still, this was going to happen one day, it was inevitable...if not because of reduced demand then because of Peak. The Saudis have a helluva lot of cash squirreled away in assets and such. I think I read somewhere that they have a reserve of $900b. Of course, with the lifestyle that their Princes lead that's probably enough to last a week... But yeah, Platapus is right, the US will bail them out eventually, because no one in the GOP would stomach the US siding with Iran on anything so the US will have to side with Saudi Arabia against Iran in the coming Middle Eastern cold war.

10-26-15, 03:04 PM	#9
Betonov Navy Seal Join Date: May 2009 Location: Slovenia Posts: 8,647 Downloads: 26 Uploads: 0	They can always melt their Lamborginis into gold bars

10-26-15, 03:16 PM	#11
Betonov Navy Seal Join Date: May 2009 Location: Slovenia Posts: 8,647 Downloads: 26 Uploads: 0	Lamborghini, Ferrari, Fiat... all Italian