Saudis Plan Big Oil Output Hike, Beginning All-Out Price War

[FuturePAF]

OPEC deal collapse sparks price war: ‘$20 oil in 2020 is coming’
https://www.cnbc.com/2020/03/08/opec-deal-collapse-sparks-price-war-20-oil-in-2020-is-coming.html

Considering oil imports make up a large part of Pakistan current account deficits, $20 a barrel should make it a lot easier for Pakistan climb out of the hole it is in.

 

[Dark1]

Considering oil imports make up a large part of Pakistan current account deficits, $20 a barrel should make it a lot easier for Pakistan climb out of the hole it is in.

Low oil price seems like a boon because Pakistan has a foreign exchange issue. But too low a price means consumption is down and the world economy is in severe recession. It will mean thousands of job losses directly from the oil industry in the middle east and other industries in the middle east. It's a globalized world. When the arabs cant earn , they fire people from the sub continent , who were also sending billions in foreign exchange. A world in recession means pakistan's customers in Europe and usa reduce consumption, leads to job losses.
A middle ground is very important in oil price.

 

[Timur]

plz dont raize it again in summer.. I need to drive 3000km

 

[FuturePAF]

Low oil price seems like a boon because Pakistan has a foreign exchange issue. But too low a price means consumption is down and the world economy is in severe recession. It will mean thousands of job losses directly from the oil industry in the middle east and other industries in the middle east. It's a globalized world. When the arabs cant earn , they fire people from the sub continent , who were also sending billions in foreign exchange. A world in recession means pakistan's customers in Europe and usa reduce consumption, leads to job losses.
A middle ground is very important in oil price.

While that is true, the Saudi's for their own sake will try to keep the increased oil export for as short as possible. They have to make up for their lost output after the Iranian attack last year, and also hurt those Iranians with lower oil prices. The lower oil prices could cause a boost to the world economy, if coupled with investments to boost productivity in developing nations, like Pakistan. Simulating demand in developing world, not the developed world, as shown in the modernization of China.

Agricultural modernization, spurred on by lower energy costs, can bring on sales in machinery or modern fertilizers, as farmers can invest money they have saved by the lower oil prices. The Saudis can invest in Pharmaceutical plants (and other hydrocarbon based industries) in developing countries, where they refine and undercut other companies due to their vertical integration. The potential growth is in the developing world.

 

[HAIDER]

Considering oil imports make up a large part of Pakistan current account deficits, $20 a barrel should make it a lot easier for Pakistan climb out of the hole it is in.

but we have bureaucracy more loyal to royals
then home .

 

[Crusher]

This was inevitable after the recent collapse of OPEC+ meeting in Vienna. Oil prices are doomed in the near future.

 

[FuturePAF]

but we have bureaucracy more loyal to royals
then home .

How does that effect the price at which Pakistan purchases oil?

 

[HAIDER]

How does that effect the price at which Pakistan purchases oil?

finance and planning division, ministry of petroleum.

 

[FuturePAF]

finance and planning division, ministry of petroleum.

So the bureaucrats get paid off to buy oil at a higher price?

 

[Genghis khan1]

A sharp drop in Oil prices will be relief for Pakistan. This maybe the best time for Pakistani companies to build up their Pharmaceutical and other hydrocarbon based industries on the back of these lower priced raw materials.

It’s good time for Govt to build its oil reserves and use those few extra Billions per year towards Dams.

Considering oil imports make up a large part of Pakistan current account deficits, $20 a barrel should make it a lot easier for Pakistan climb out of the hole it is in.

Or fund large Dams without loans or interest. Pure saving. No interest, no loan, sucking up to IMF or Habibis, clean energy, reduce oil import. Pocket Billions of dollars once dam is up n running.

Win win...

Average life cycle of Dams are 50 years. If Dam produces economic activity of $6 to $8 billion per years. That’s Billions and Billions

And Billions..

 

[FuturePAF]

It’s good time for Govt to build its oil reserves and use those few extra Billions per year towards Dams.


Or fund large Dams without loans or interest. Pure saving. No interest, no loan, sucking up to IMF or Habibis, clean energy, reduce oil import. Pocket Billions of dollars once dam is up n running.

Win win...

Average life cycle of Dams are 50 years. If Dam produces economic activity of $6 to $8 billion per years. That’s Billions and Billions

And Billions..
View attachment 612089

If Pakistan had spare money, I would say build up strategic reserves, but Pakistan is short on cash.

Pakistan should try to get into the Pharmaceutical industry in a big way now, as well as modernize and ramp up its agricultural output.

While overall global demand will decline in the event of a recession, as global population continues to grow steadily, medicine and food demand will grow.

Also as the disruption the Corona virus has caused to Chinese supply chains, global investors may diversify where they source raw materials for medicines and food.

Pakistan should start to get prepared while oil prices are lower. These low prices may last months and maybe even a few years at most, but they will bounce back. Now is the time to buy and shift into pharmaceuticals and modern agriculture in a big way.

 

[Crusher]

If Pakistan had spare money, I would say build up strategic reserves, but Pakistan is short on cash.

Pakistan should try to get into the Pharmaceutical industry in a big way now, as well as modernize and ramp up its agricultural output.

While overall global demand will decline in the event of a recession, as global population continues to grow steadily, medicine and food demand will grow.

Also as the disruption the Corona virus has caused to Chinese supply chains, global investors may diversify where they source raw materials for medicines and food.

Pakistan should start to get prepared while oil prices are lower. These low prices may last months and maybe even a few years at most, but they will bounce back. Now is the time to buy and shift into pharmaceuticals and modern agriculture in a big way.

That is indeed what Pakistan should be doing taking advantage of low oil prices and building a reserve for at least next six months to one year.

 

[XTQ1999]

Last time Saudis launched this oil war they were bleeding 100+ billion dollars from their FOREX reserves and had to lock up royal family members to squeeze money out of them. I guess it's time to burn some money again.

 

[hunter_hunted]

They have no clue what they are doing; they will cripple their own economy in doing so. Aramco going public means they are accountable for profits/losses; if there is no sustained growth or net income, forget it - their own value will collapse. It seems this was a pyramid scheme at play.

Today i loss 1500 Riyal

 

[denel]

Today i loss 1500 Riyal

Indeed, clown donkey Salman is going to cripple many industries starting with a massive loss of revenue to KSA or even UAE to begin with.