FP: The Unexpected Winner of the 2020 Oil War

6 May 2020 24

Foreign Policy experts said that during the "oil confrontation", caused by an oversupply of fuel on the world market and a sharp drop in prices, an unexpected winner was outlined. Strange as it may seem, Saudi Arabia will gain advantages over other oil producing countries in the future.

One of the reasons for the possible victory of the Saudis in the “oil war” of 2020 is the stability of the financial system of Saudi Arabia. Despite the fact that the country's budget is calculated on the basis of $ 80 per barrel of oil, as well as a reduction in tax revenues caused by a number of restrictions due to the coronavirus pandemic, Arabia does not expect economic defaulted. On the contrary, local authorities have proven that they are able not only to properly manage state reserves, but also to borrow effectively. Saudi Finance Minister said that in 2020 the country could borrow up to $ 58 billion from external investors.

Another reason for the success of Riyadh is the possibility of obtaining higher income from recovering markets after the end of the pandemic and an increase in global demand for black gold. While other countries are reducing production and reducing their market share, the Saudis are less affected, therefore, FP believes that the current situation lays the foundation for the price boom in the coming years and revenue growth for the country.

In addition, by strengthening its relationship with the United States and establishing itself as a major oil producer, Saudi Arabia is improving its geopolitical position in the region.

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123

+7

6 May 2020 17: 12

Thank you, have fun at night looking. Yeah, the winner is really unexpected.

One of the reasons for the possible victory of the Saudis in the “oil war” of 2020 is the stability of the financial system of Saudi Arabia.

The exchange rate is stupidly tied to the dollar.

On the contrary, local authorities have proven that they are able not only to properly manage state reserves, but also to borrow effectively. Saudi Finance Minister said that in 2020 the country could borrow up to $ 58 billion from external investors.

They know how to spend reserves and borrow. Here it is, the secret to success. And then they will then work better than anyone ..... probably.

While other countries are reducing production and reducing their market share, the Saudis are less affected, therefore, FP believes that the current situation lays the foundation for a price boom in the coming years and revenue growth for the country.

Did I understand correctly? The USA, Russia and the rest are cutting production more than the Saudis? Of course, I admire the wisdom of the sons of the desert, but I would like to look at the numbers.

In addition, by strengthening its relationship with the United States and establishing itself as a major oil producer, Saudi Arabia is improving its geopolitical position in the region.

Trump has appointed Prince Salman as the main producer?
I wonder how many suitcases with green cut paper brought bearded guys in pajamas to the Foreign Policy office?
1. Observer2014
  
  -6
  
  6 May 2020 17: 22
  
  The exchange rate is stupidly tied to the dollar.
  
  You noticed!? This is a very serious argument do not find?
  
  They know how to spend reserves and borrow. Here it is, the secret to success. And then they will then work better than anyone ..... probably.
  
  Are you envious of us that we cannot borrow? Or did they find the Grail for their prosperity and our poverty compared to them?
  
  Did I understand correctly? The USA, Russia and the rest are cutting production more than the Saudis? Of course, I admire the wisdom of the sons of the desert, but I would like to look at the numbers.
  
  Feel better?
  1. 123
    
    +6
    
    6 May 2020 17: 36
    
    You noticed!? This is a very serious argument, don’t you?
    
    I do not find. Link the exchange rate to a foreign currency and change it manually at times. What stability of the financial system does this mean?
    
    Are you envious of us that we cannot borrow? Or did they find the Grail for their prosperity and our poverty compared to them?
    
    You are a strange person. What envy are you talking about? You like it - go and collect debts as much as you can. Feel like a sheikh until the collectors come. I don’t know what kind of poverty you’re talking about, everything suits me. I do not like it, the borders are open, you can go try your luck in the sands of Arabia.
    
    Feel better?
    
    Who is better? Or what? Or who? In general, somehow you mysteriously express yourself.
    1. Observer2014
      
      -4
      
      6 May 2020 17: 41
      
      I do not like it, the borders are open, you can go try your luck in the sands of Arabia.
      
      I liked it most of all.
      And what, poorly for so many years in power, the Russian people provide wealth? Or a minimum wage and a civil pension suit you? And also income? Or are we Sparta? But you know how Sparta ended up?
      1. 123
        
        +6
        
        6 May 2020 18: 03
        
        And what, poorly for so many years in power, the Russian people provide wealth? Or a minimum wage and a civil pension suit you? And also income? Or are we Sparta? But you know how Sparta ended up?
        
        Do you again consider yourself, beloved, as the Russian people? I'm afraid you are wrong. Why did you get the idea that someone should fit a limousine with gold to your entrance, it is not clear. There will be no such thing, 145 million parasites smoking a hookah on the couch, Mother Russia will not pull it. We have already talked about getting our share of the "freebie" for each individual citizen. Apparently, you can not refuse an empty dream? What does the Sparta, is unclear. Are they trying to push you off a cliff? Or take to the army?
        
        Observer2014
        
        -4
        
        6 May 2020 18: 08
        
        Do you again consider yourself, beloved, as the Russian people?
        
        Healthy selfishness.
        
        145 million parasites smoking hookah on the couch, mother Russia will not pull
        
        I hate smokers. You try, "cutting the fly", at least minimally ensure that the Russian people do not need anything. And then together we will talk together about the second! Yeah !!?
        
        123
        
        +7
        
        6 May 2020 18: 18
        
        You try, "cutting the fly", at least to ensure that the Russian people do not need anything
        
        You don’t understand anything? I'm not going to even try to provide someone. Firstly, do not make yourself a representative of the whole nation. Secondly, you think that Russian people need something, take it and provide it.
        
        Observer2014
        
        -4
        
        6 May 2020 18: 23
        
        I'm not going to even try to provide someone
        
        This is your very essence
        
        do not make yourself a representative of the whole nation
        
        Well, this is without your average margin of error already.
        
        Secondly, you think that Russian people need something, take it and provide it.
        
        But with this, let's take a closer look!
        
        123
        
        +4
        
        6 May 2020 18: 30
        
        What is my point? With what fright should I provide you? I don’t remember adopting.
        Do you still consider yourself the embodiment of the people? For example, I did not authorize you to do this on my own behalf, I believe the others, too. You, old man, are an imposter.
        
        But with this, let's take a closer look!
        
        Why do you need more details? Need money, earn, well, or take a shovel and go seek the treasure. We decided to bless the people, act. Good luck in this noble cause. We have one country with you, equal rights and opportunities. Something not like? Go change. I have nothing to drool over my vest.
        
        Observer2014
        
        -5
        
        6 May 2020 18: 37
        
        What is my point?
        
        Go already, put the minuses to me, feel better.
        
        We have one country with you, equal rights and opportunities
        
        You will be very few. If we leave our country, there will not be enough shovels for people like you near Moscow, if anything, to dig trenches.
        
        123
        
        +1
        
        6 May 2020 18: 42
        
        Go already, put the minuses to me, feel better
        
        Why should I make it easier? It’s not hard for me.
        
        You will be very few. If we abandon our country, there will not be enough shovels for people like you near Moscow, if anything, dig trenches
        
        Excuse me, you personally, and who else? Drive to health, live for your pleasure, dig up, if that. As a last resort, there is an excavator.
        
        Rum rum
        
        +4
        
        6 May 2020 23: 19
        
        Observer2014
        I read your posts here, and I got the impression that you are raving. Some strange conclusions, out of place answers. No ... I'm certainly not a doctor ..
        
        The comment was deleted.
        
        Nick
        
        -1
        
        8 May 2020 12: 13
        
        Quote: Observer2014
        You try, "cutting the fly", at least minimally ensure that the Russian people do not need anything.
        
        What the Russian people really need is a strong faith in God. For it is said by the Lord:
        
        Seek first the Kingdom of God and His righteousness, and all this will be added to you ...
        
        Matt. 6.32
      2. Nick
        
        +1
        
        8 May 2020 12: 05
        
        Quote: Observer2014
        And what, poorly for so many years in power, the Russian people provide wealth?
        
        And what, we have already begun a massive famine, as in the blockade?
        
        Quote: Observer2014
        Or a minimum wage and a civil pension suit you?
        
        Alas, most people in the world are dissatisfied with their incomes, quality of life, healthcare, etc. etc.
andrew42

+5

6 May 2020 17: 27

East market. You won’t praise yourself; the buyer will pass by. Someone still really wants the Saudi oil tower to be the benchmark for the development of the Russian economy.
shadow

+4

6 May 2020 18: 10

And tankers with Saudi oil accumulate and accumulate off the coast and nobody buys it (oil).
1. 123
  
  +5
  
  6 May 2020 18: 20
  
  But tankers with Saudi oil accumulate and accumulate off the coast and nobody buys it (oil)
  
  You do not understand. They are preparing for the parade. These are the winners.
123

+6

6 May 2020 19: 14

In addition, a video on the topic, more fully revealing the current state of affairs.
The comment was deleted.
Anjero

+5

7 May 2020 07: 50

Two pairs of numbers. In Russia, the budget is formed at 28% due to oil and is calculated at $ 40 per barrel. For Saudis, the budget is formed at 80% due to oil and is calculated at $ 80 per barrel. So, tell us further how the Saudis won.
Vyacheslav34

+5

7 May 2020 12: 55

Saudi oil is only suitable for the production of gasoline, Europe needs oil for deep processing to obtain all that nature has laid down in heavy oil. For petrochemicals, Saudi oil is not suitable for Europe. Saudi Arabia is simply a world gas station, but ambition is higher than the roof.
Arkharov

-3

7 May 2020 14: 05

And what, someone else suggested something else?
1. The comment was deleted.
mahdi.maxdiev

+4

7 May 2020 16: 09

Rzhu I can not, an excellent "essay", you see, the economist wrote, hi .. hi .. What's the point of misleading people, eh? Remember: S is tied to oil in the Saudis. Arabia's entire economy is based on oil, 80S per barrel * is invested in the budget, 40S in the Russian Federation, and thank God, we are moving away from oil, Russia has something to trade, and what does Saudia have? Camels? So soon they will sit down from the Merc on the four-legged! Got it? Today, such a scenario will no longer work with Russia, etc. countries that produce oil. It's just that the world has changed and Russia will not allow the Saudis to roam, in which case, Yemen is close by, which the Saudis have turned into trash *. Saudia is in fear today, tomorrow or the day after tomorrow, the Yemenis will show them Kuzka's mother, shut down the refinery and the kingdom knows about it that the end is near! And Russia is a fine fellow, drove the camel-hunters into a corner. It's time to know honor and conscience. Have you noticed that there are hundreds of tankers on the coast of the United States? God forbid, they will explode, there will be a disaster more powerful than in the Gulf of Mexico! Has it reached you? Because the US nafig Saudi oil, especially Europe, they need heavy oil! Now it dawned on who beat whom, eh? That's not all, all the flowers are ahead, the end of the "American dream", the dollar!
1. Accidentally
  
  -3
  
  8 May 2020 10: 55
  
  And if we have to get out of Syria ??? How events will develop further ???
Yuri Garbukov

+4

7 May 2020 22: 44

The Russians do not need anything.

Russia is very dangerous by the meagerness of its needs.

O. Bismarck is the great chancellor of Germany.