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"Russia may have a load of oil but getting it out of the ground is more expensive than Saudi oil."
Lifting costs are much the same between the 2 actors you mention. But 1 significant benefit those pesky Russians have is the ruble. It ain't fixed to the $.
I suppose moody's got it wrong, they see Russia GDP shrinking by 1% this year based on low low oilprice. GS sees US GDP shrinking by 25 to 40% in this quarter. It's no wonder trumplestilksen wants everyone going to work after Easter. US looks to be on a CV curve like no other due to inaction based on the desire to not disrupt economy in 1st quarter.
Whether the US goes back to work in April or not is irrelevant as the damage is done. Biggest economy biggest hit, quite obviously.
Russia has been amassing gold like no other country for 3 years as it shifted its money from the US to gold and a mix of lesser currencies for direct trading purposes.
I think Russia well placed here, SA is going to fall. I think the US are happy about that. Between orchestrating attacks on it's own facilities and chopping up a US resident in a consul in Istanbul their road is up.
sk can't be deramping consistently probably wants a low buy in or has downbet.
Russiatried to hedge the drop in oil prices and get in on weak dollars completely failed now struggling to sell what they have, tried to play poker and losing.
Not hard to see tbh .
Explain
USA is the Worlds biggest, strongest economy by a huge amount.
See :-
https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)
As you can see the USA is massively bigger than both Russia (11th) and Saudi (18th).
I would say Russia has the weakest hand between USA, Russia and Saud as far as oil goes.
Russia may have a load of oil but getting it out of the ground is more expensive than Saudi oil.
Saudi has massive oil reserves some of which are state secrets (one would assume enourmous underground seas of oil).
Saudi is ruled by a king and the people don't cause much trouble as far as I can tell.
On the other hand Putin runs Russia but these days he has to be careful so massive cuts in their budget could cause political problems and even trouble on the streets. Russia needs Brent @ $40........... it's at $25 now and that is a massive difference.
Both Russia and Saudi are heading for big problems with the oil price @ $25 that is for sure.
The USA is not happy either, but it is in no where near as much trouble as the other two.
Also the USA no doubt knows this as they are very far from daft.
So joint financial suicide seems to be where Saudi and Russia are at the moment.
All rather silly.
All IMHO
https://www.wearethemighty.com/amp/oil-price-war-national-security-2645581972
Russia the weakest
Really, in 2 weeks and again in 2 months we will revisit the topic of weakness and cracked eggs.
sit down and cut the oil supply by several million barrels a day all 3 will pay a massive cost.
I now think Russia is in fact in the weakest position, although they will never admit it.
Then Saudi, then last of all the USA. I have no doubt oil production in the USA is a major part of their economy, but I fancy it is no where near Russias or Saudi's.
WTI is struggling to stay above $20 a barrel. If they do nothing it seems obvious it will fall to $15 and then even down to $10 a barrel.
The accountants in the Kremlin must be extremely worried.
But will Saudi sit down to do a deal. I fancy they will wait a few more weeks.
All IMHO.
Al IMHO.