OPEC deal collapse sparks price war --- â€˜$20 oil in 2020 is comingâ€™

**David48atTD** · 09-03-2020, 05:19 AM

OPEC Secretary General Mohammed Sanusi Barkindo (L), Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman (C) and Russian Energy Minister Alexander Novak (R) attend an Opec-JMMC meeting in the UAE capital Abu Dhabi on September 12, 2019.
KARIM SAHIB | AFP via Getty Images

Key Points

Oil prices are down 30% for the year as the new coronavirus, COVID-19, slashes global demand forecasts.
With previously agreed OPEC+ production cuts expiring at the end of March, Saudi Arabia and Russia can theoretically pump as much crude as they want.
International and U.S. oil benchmarks plummeted to multiyear lows on Friday, with Brent crude closing at $45.27, down more than 9%, and West Texas Intermediate down more than 10%.

OPEC deal collapse sparks price war: '''$20 oil in 2020 is coming'''

**sabang** · 09-03-2020, 05:24 AM

China sneezes, and the World gets the flu. It's only good news for me frankly- cheaper to fill my tank, or fly elsewhere. But talk about an over reaction.

**harrybarracuda** · 09-03-2020, 11:25 AM

Originally Posted by sabang

China sneezes, and the World gets the flu. It's only good news for me frankly- cheaper to fill my tank, or fly elsewhere. But talk about an over reaction.

Thousands of factories are closed, in China and elsewhere. Demand for oil has plummeted.

People aren't going out, people aren't travelling, so demand for products like Petroleum and Avgas are down, and refining margins were already in the toilet.

The price was already artificially high because Russia and OPEC were limiting production.

It's an inevitable consequence.

**David48atTD** · 09-03-2020, 03:45 PM

European shares fall 6.8% and Italian stocks fail to trade; BP tanks 24% as oil prices crash

Oil stocks capitulate

Energy giant BP plunged 24% in early trade as oil stocks took a hammering.
Britain’s Tullow Oil fell 57%.

British industrial rental company Ashtead Group fell 32%, investment house Schroders tumbled 30% and a host of stocks across the European benchmark shed more than 20% as markets descended into turmoil.

**panama hat** · 09-03-2020, 03:53 PM

Originally Posted by sabang

It's only good news for me frankly- cheaper to fill my tank, or fly elsewhere.

But will we actually see the benefits? Prices are notoriously slow in declining but react with speed when it increases

**Neverna** · 09-03-2020, 05:47 PM

Originally Posted by panama hat

But will we actually see the benefits? Prices are notoriously slow in declining but react with speed when it increases

I think Thailand is fairly quick to react in both directions. We'll see this time. IIRC, I paid just over 33 baht a litre for benzine yesterday.

**panama hat** · 09-03-2020, 05:57 PM

Originally Posted by Neverna

I think Thailand is fairly quick to react in both directions. We'll see this time. IIRC, I paid just over 33 baht a litre for benzine yesterday.

16.40 baht for a litre of 97 here . . .

**Norton** · 09-03-2020, 09:23 PM

The last straw causing a stock market meltdown.

**OhOh** · 09-03-2020, 09:34 PM

Originally Posted by Norton

causing a stock market meltdown

The "cause" has been baked in for years.

**Norton** · 09-03-2020, 09:42 PM

Originally Posted by OhOh

The "cause" has been baked in for years.

It has but always takes a trigger like this to "correct" it. Combination of the virus, heavy corp debt supported by ridiculous interest and now this equal a perfect storm.

**Neverna** · 09-03-2020, 09:46 PM

Petrol prices in Thailand today. Let's see how quickly they change.

**Norton** · 09-03-2020, 09:53 PM

Originally Posted by Neverna

Petrol prices in Thailand today. Let's see how quickly they change.

Usually change pretty quick. Should see them change shortly after SET opens tomorrow.

**harrybarracuda** · 09-03-2020, 11:32 PM

Guess who's probably already planning to borrow lots of money and give it to his friends to "revive the economy"?

**Dragonfly** · 09-03-2020, 11:41 PM

excellent move, then

**David48atTD** · 10-03-2020, 12:50 AM

Originally Posted by Neverna

I think Thailand is fairly quick to react in both directions. We'll see this time. IIRC, I paid just over 33 baht a litre for benzine yesterday.

RON 95 ... premium octane fuel.

Nev, what Limo art thou driving?

Photo, or it didn't happen

**Neverna** · 10-03-2020, 01:01 AM

Originally Posted by David48atTD

RON 95 ... premium octane fuel.

95 octane petrol isn't really premium, Dave. It is just the highest octane of the fairly low octane petrol available in Thailand. When I was a lad in the UK, 97 and 99 Octane were available.

(Edit: apparently 99 octane petrol is still available in the UK).

**NamPikToot** · 10-03-2020, 01:13 AM

Originally Posted by Neverna

(Edit: apparently 99 octane petrol is still available in the UK).

Tis indeed Nev, usually 3-4p a litre dearer.

**jabir** · 10-03-2020, 01:28 PM

Originally Posted by Norton

The last straw causing a stock market meltdown.

There's a haystack in reserve. SET is bumping on the strength of overreacting yesterday, + maybe Dow futures adjusting from its own hysteria.

Free advice: If you got cash keep it, don't get carried away by this dead cat bounce, upside small, downside still yuge.

**cyrille** · 10-03-2020, 02:33 PM

Originally Posted by Neverna

Petrol prices in Thailand today. Let's see how quickly they change.

Send snakey out to take a pic every day.

**lom** · 10-03-2020, 02:41 PM

^

.

**OhOh** · 10-03-2020, 03:13 PM

Originally Posted by jabir

Free advice: If you got cash, buy solid gold bars,

FIFY.

In a range of weights, to suit all "occasions".

OPEC deal collapse sparks price war --- ‘ oil in 2020 is coming’-buying-silver-gold-china-32395b868fcb3939b-jpg

**David48atTD** · 10-03-2020, 03:15 PM

Originally Posted by OhOh

Meh ... not worth a moment in time

**Neverna** · 10-03-2020, 04:25 PM

31.78 for 95 benzine today.

**panama hat** · 10-03-2020, 04:51 PM

Originally Posted by Neverna

31.78 for 95 benzine today.

May I?

KL -

95 - 14.07 baht
97 - 16.31 baht

NZ- 44B baht

In two weeks I'll be paying almost triple to now, so 31 baht ain't too bad

Ouch:

OPEC deal collapse sparks price war --- ‘ oil in 2020 is coming’-screen-shot-2020-03-10-17-a

(Edited to include graph)

**OhOh** · 10-03-2020, 06:15 PM

Originally Posted by David48atTD

Meh ... not worth a moment in time

It was just me suggesting there are alternates which have shown better wealth retention over millennia. Cash will not help one survive a viral, real or financial, epidemic.

Unfortunately I lost all my gold whilst, "crossing a river, up stream of a water fall".

Decisions, Decisions.

My survival or my gold?

Life goes on for me, wealth can be measured in many ways. It can be given or received in many forms.

Don't imagine there is only one yardstick.

But I waffle.

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