Saudi Arabia cuts oil prices for Europe, raise oil prices for Asia

[fallstuff]

Wow, Saudi Arabia really stooped that low?

They may be doing this because of their rivalry with Iran.

They are dropping the heavy crude price for the europeans but going up on the asians using light sweet. Basically the asians are subsidising the white folks. They are charging the white folks $.40 less per barrel, but jacked up the price on asians by $1.35.

All hail thick abdullah.

 

[xdrive]

This oil price increase is business 101. It's got nothing to do with Iran or anything political. I can't believe all the ignorant posts in this thread saying things like "OH IT'S BECAUSE OF IRAN" "OH DAMN THOSE SAUDIS" If you don't actually know information about the subject, don't make assumptions.

Let me explain it for you all.

The cost of oil is dictated by supply and demand.

Oil demand is high in Asia, so they raise the price to make more profit because they know people will keep buying.
Oil demand in Europe is lower because of their financial situation, so to increase the amount of oil being purchased by Europe they lower the price which encourages more purchases.

Like i said, this is business 101. It's basic business practices. Every oil producing country and company does it in the world, theres nothing wrong with it.

 

[xdrive]

It's like having bread and milk.

If everyone wants milk, a shop owner would increase the price of the milk. If no one is buying bread, they would lower the price to encourage people to buy it.

 

[xdrive]

saudia arabia, qatar, bahrain, UAE, oman are the ones propping up the american empire by pricing their oil in dollars.
the petrodollar is the central pillar of the american empire.

No. The reason oil prices are in U.S dollars is because the U.S dollar was made the reserve currency after world war 2. The UN is currently exploring the option of a global currency to use in such transactions.

Try using factual information when posting instead of anti-US lunatic conspiracy theories.

Thanks.

 

[fallstuff]

This is interesting stuff. The Saudis took a*s kissin to a whole new dimension.

 

[hawx]

wat are they thinking ? this will lead to more countries buying oil from Iran.
Good job Saudi now India has one more reason to ignore sanction against Iran.

 

[Mosamania]

wat are they thinking ? this will lead to more countries buying oil from Iran.
Good job Saudi now India has one more reason to ignore sanction against Iran.

You do realize that a country can NOT control how much Oil is right?? It is not like hey I will sell to this guy for 5 bucks and this guy for 10. It doesn't work this way. There is OPEC there is Market Price there is Speculators etc. All these things control the price not the company. Supply and Demand if it was up to the company it would sell it for 200$.

 

[TruthSeeker]

So many racists on this thread... Amazing. The Saudis are business people who recognize which of their customers cost them ancillary dollars in other parts of their national budgets (i.e. defense) and which do not. They are not not racists, only intelligent nationalists.

 

[TruthSeeker]

The UN is currently exploring the option of a global currency to use in such transactions.

Good luck with that!!! The "UN" isn't a responsible government, doesn't have any legal taxing authority, and has no assets. There is no way the "UN" could create a meaningful "global currency".

 

[Ajaxpaul]

I say, up the ante in Iran. India and china should explore and develop Iranian Oil fields. Saudi's can suck up to the west. Saudi's are good business man some say. I say its crap. Not allowing Iran to do business in world market and calling Saudi's good business men is the worst hypocrisy ever.

 

[xdrive]

I am sick of idiots on here who have no idea how business works and they think every market based decision is the work of governments.

They obviously have no idea how the real world work nor do they have any idea about business.

 

[W.11]

I say, up the ante in Iran. India and china should explore and develop Iranian Oil fields. Saudi's can suck up to the west. Saudi's are good business man some say. I say its crap. Not allowing Iran to do business in world market and calling Saudi's good business men is the worst hypocrisy ever.

my father works in arab shipping and he says the brain of sheikh is in his knee translating from urdu obviously

 

[xdrive]

I say, up the ante in Iran. India and china should explore and develop Iranian Oil fields. Saudi's can suck up to the west. Saudi's are good business man some say. I say its crap. Not allowing Iran to do business in world market and calling Saudi's good business men is the worst hypocrisy ever.

You have just ignored posts explaining that oil prices aren't controlled by governments. If you refuse to educate yourself, dont make stupid conspiracy posts,

Everytime there is a market price change, people pretend its done by the government as some sort of attack on another country.

People need to learn how the system works before opening their mouths,

 

[pmukherjee]

This oil price increase is business 101. It's got nothing to do with Iran or anything political. I can't believe all the ignorant posts in this thread saying things like "OH IT'S BECAUSE OF IRAN" "OH DAMN THOSE SAUDIS" If you don't actually know information about the subject, don't make assumptions.

Let me explain it for you all.

The cost of oil is dictated by supply and demand.

Oil demand is high in Asia, so they raise the price to make more profit because they know people will keep buying.
Oil demand in Europe is lower because of their financial situation, so to increase the amount of oil being purchased by Europe they lower the price which encourages more purchases.

Like i said, this is business 101. It's basic business practices. Every oil producing country and company does it in the world, theres nothing wrong with it.

@ Xdrive

Buddy, all that you are saying is well known. But is it really business as usual in the oil producing Arab oil? No it is not. The US/EU has asked the Gulf oil producers and the north African ones to increase oil production to meet the demand of the countries which are switching their oil dependency from Iran. The Americans and the Saudis have gone out of their way to offer additional oil to India so that we may reduce our purchases from Iran. This is happening with other Asian countries dependent on Iranian oil as well. On one hand you try to wean away the buyers from a rival oil producer and then you hike up your prices, what business sense is that? The way to draw away customers from your rival is to sell cheaper and sell more. Countries which have their refining units designed to process Iranian crude are running into huge expenditure while trying to adapt to Arabian crude under pressure from the US/EU. On top of it, if Arabian crude get costlier, these countries are going to be crushed. At any other time, this move would have made total sense, but not at this time.

Why will Asia stop buying Iranian oil when the alternative costs more? Are the Saudis trying to hurt the US/EU sanctions on Iran? That is what it appears to be. There is something more to this. Mosa has not been able to explain this irrational oil price hike.

 

[Ajaxpaul]

You have just ignored posts explaining that oil prices aren't controlled by governments. If you refuse to educate yourself, dont make stupid conspiracy posts,

Everytime there is a market price change, people pretend its done by the government as some sort of attack on another country.

People need to learn how the system works before opening their mouths,

what conspiracy post have i written? Oil prices are decided on the basis of demand...simple economics. If Iranian oil cannot reach market, then there will be less oil for the same customers who's demand is only increasing.

Dont tell me govt have nothing to do with prices. A certain govt putting sanctions on Iran has reduced the amount of crude oil reaching market, thus increasing prices because of higher demand.

Now Mr Xdrive do tell me how the world world works? Obviously we dont know how it works in Australia.