Do the Saudis still matter?

Rambo35

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Apr 22, 2013
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According to an article Saudi Arabia does not really care if the price of oil drops to $20 per barrel. Does this still matter? A lot of Saudi production is useless to the developed world and other countries play a much more significant role.

I think OPEC in general has lost its dominance it once enjoyed over the oil market. Seems as there is little behind the Saudi statement. Oil at $20 would to me suggest a global recession or worse.
 

Enivid

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Saudi Arabia may still be the biggest exporter of oil (it was in 2012 at least), which makes it very important. When its exports fall to 1-2 million barrels per day, it will cease being important, but for now they can bend the prices as they like.
 

Fxpipper

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The saudis are playing tag with both production and hedging against expected increases in both demand and price later on. For the moment, neither OPEC or Saudi arabia is looking too worried about the current prices and other than oil, there ain't much left in their kitty..
 

Enivid

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The saudis are playing tag with both production and hedging against expected increases in both demand and price later on. For the moment, neither OPEC or Saudi arabia is looking too worried about the current prices and other than oil, there ain't much left in their kitty..
I would say that some OPEC members are definitely worried about the current price (e.g. Venezuela), but there isn't much they can do. They cannot lower the output in a unilateral manner - it won't affect price much but will seriously undermine their income.
 

Fxpipper

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I would say that some OPEC members are definitely worried about the current price (e.g. Venezuela), but there isn't much they can do. They cannot lower the output in a unilateral manner - it won't affect price much but will seriously undermine their income.

Given how Oil is reaching the bottom of the barrel, sorry just had to use that one liner, the next opec meeting sure would be interesting to watch. I still think that the opec is not going to do much about this..but then again, the current low trend could just be too much for them..
 

Enivid

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Given how Oil is reaching the bottom of the barrel, sorry just had to use that one liner, the next opec meeting sure would be interesting to watch. I still think that the opec is not going to do much about this..but then again, the current low trend could just be too much for them..
To me, OPEC in its current form looks too disorganized to offer some meaningful supply-cutting action. Some members will object and even if the vote passes, they will just ignore the limitations.
 

Fxpipper

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That reminds me of a janus statue,, with two heads, gazing away in opposite directions. I guess OPEC is now a devalued organization..
 

Fxpipper

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Well, what do you know, the king of Saudi arabia kicks the bucket and Oil shoots up?? Well, would suggest that all traders who are into trading energy, to wait a bit for the dust to settle..
 

fxapex

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Jun 7, 2013
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Saudi still has good percentage of market share in the oil producing nations, so its presence still do matters.
 

joescholz

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With the drastic fall in the prize of crude oil in the international market, I don’t think the saudi’s still matter because crude oil is the main thing they have major control over.