RE: Canada16 Mar 2022 13:40
He doesn't know what he is talking about, oil was already above $80 before the war and this only happened coz of shortage of supply and demand.
oil went to $132 due to the war and sanctions on Russia
America are in a panic mode at the moment, coz they can't sustain high oil price for their economy, as inflation is all time high and they are trying to play it down
Now Saudi Arabia is in full control and they have already said they are happy with the quantity and oil price currently and they wont increase output, if oil price drops Saudi Arabia will just cut the supply to maintain the high oil price.
Also to throw the spanner in to the works, Saudi Arabia have already said they will be willing to accept Chinese Yuan as a means for payment for its Oil, coz of their disagreement over America lack of support for Saudi intervention in the Yemen civil war and America striking a deal with Iran over its nuclear program
If that happens then the dollar crashes and then you are talking about $200 or $300 or $400 or $500 dollars per barrel of oil coz dollar will have no value and no longer be the petro dollar and most countries in the world would prefer to deal in oil with another currency to strip America of its control over the petro dollar, then you can buy with Euro, Sterling etc