WE have a suicidal player in the energy industry

[Marcin2 + 726]

On 3/30/2020 at 3:23 PM, cloudslicer said:

I'm sure you are all aware of Alexander Novak, the destroyer of worlds, who is using Russia's sovereign wealth fund to subsidies oil at below break even costs to kill US/Canadian OIL.

So what are our alternatives?

This is not a market move, it is all about geopolitics.

Putin or his people are very smart guys. I do not how he was able to use Saudi Arabia for his current plans, they are doing so much harm to SA economy.

Russian costs:

7-8 m bbl/d at a price depressed by 30 dollars. So alternative cost for Russian economy: 7 billion dollars/month. I do not know how much is lost tax revenue vs burden oil majors.

They could do this for 2-3 years or till Saudis and US shale is bankrupt whatever comes first.

Russian gains:

- politically difficult for Trump destruction of US shale oil industry in election year, and shows how cunning and ruthless player Putin can be,

- destruction of Canadian oil industry and maybe some voices for diversification out of uncle Sam demand dependance,

- costs for SA and other sunni countries :so better situation in Syria, Iran,

- savings for its major ally China - easier to jumpstart economy and consumption After epidemic

- savings for East Asia and EU.