Dumping oil prices Saudi Arabia can bury the economy of America, not Russia – Grivna.info

Dumping oil prices Saudi Arabia can bury the economy of America, not Russia – Grivna.info

After Putin’s announcement that it has signed a new contract with China, according to which the number of exported oil will be increased, Saudi Arabia decided to throw the last trump, and lowered the price of $ 0.90. Such a fall in prices of black gold have not seen for more than fourteen years. Besides Saudi Arabian Oil Co. said that this price it can hold at least three years without experiencing much discomfort.

In such steps Saudi Arabian Oil Co. went out to the fact that most of its oil goes to the Asian market. If she does not take drastic measures, that may be left without the main buyer. True, many have noticed that Russia and China are connected not only to oil prices, but also more ambitious plans. Therefore, even this step may not help get rid of Saudi Arabia’s main competitor.

This is not the first fight with Russia Saudi Arabia for the Asian market, it was previously supplied Saudi Arabia, China and other Asian countries with oil products. Economic idyll lasted until the Russian market did not come with Angola, occupying almost half of the oil market.

Initially, Saudi Arabia has set up more strongly, saying that such prices it can easily hold a few years. The main argument was the low cost of oil production. It is true this year Saudi Arabian Oil Co. doubted the correctness of the decision. China, as before, considers Russia as a companion, so much sense to keep low oil prices do not.

If you suspect Saudi Arabian Oil Co. and it can be confirmed their interest rates only a small part of the Asian market, such dumping can be significantly affected her own economy. Russia is and will continue to supply oil to specified volumes.

According to the president of Russia, the decline in oil prices on a couple of dollars will not affect the country’s economy, and they can safely stay on the oil market. Also according to Putin Saudi Arabia can not meet the needs of the entire Asian market, for this it is necessary to increase oil production.

Also, Russian President recalled that the decline in oil prices in the first place would undermine the US economy, as their oil and shale gas have higher costs. With pricing that is trying to enter Saudi Arabia, the United States will have to abandon their projects as their only advantage is an independent production.

Will Saudi Arabia to circumvent its rival in the person of Russia, only time will tell. According to economists, the results of lower oil prices will show up in the coming months.