Oil prices are being maneuvered

The United States has two objective behind keeping oil prices high: 1) it could keep shale producers making profit and 2) prompting Saudi Arabia to buy more weapons. While the US is ultimate gainer, Saudi Arabia will be the biggest looser. Soon sanctions will be imposed on Saudi Arabia for killing the journalist and all the blame will be put on Price Mohammad. It is beginning of another proxy war, between Turkey and Saudi Arabia.  

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On 10/22/2018 at 12:14 PM, Shabbir H. Kazmi said:

The United States has two objective behind keeping oil prices high: 1) it could keep shale producers making profit and 2) prompting Saudi Arabia to buy more weapons. While the US is ultimate gainer, Saudi Arabia will be the biggest looser. Soon sanctions will be imposed on Saudi Arabia for killing the journalist and all the blame will be put on Price Mohammad. It is beginning of another proxy war, between Turkey and Saudi Arabia.  

That would certainly be good for the US - and entertaining to watch.  

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On 10/23/2018 at 12:14 AM, Shabbir H. Kazmi said:

The United States has two objective behind keeping oil prices high: 1) it could keep shale producers making profit and 2) prompting Saudi Arabia to buy more weapons. While the US is ultimate gainer, Saudi Arabia will be the biggest looser. Soon sanctions will be imposed on Saudi Arabia for killing the journalist and all the blame will be put on Price Mohammad. It is beginning of another proxy war, between Turkey and Saudi Arabia.  

Is that what the newspaper is saying in the Middle East?

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On 10/22/2018 at 12:14 PM, Shabbir H. Kazmi said:

Soon sanctions will be imposed on Saudi Arabia for killing the journalist and all the blame will be put on Price Mohammad. It is beginning of another proxy war, between Turkey and Saudi Arabia.

There won't be US sanctions on Saudi Arabia.   And Turkey is an ally of Iran, which means the proxy was between them has been going for a while now.  

On 10/22/2018 at 12:14 PM, Shabbir H. Kazmi said:

The United States has two objective behind keeping oil prices high: 1) it could keep shale producers making profit

Also, you make a good point that US shale drillers benefit from high prices, but the entire US economy suffers from those same high prices via increased transport costs.  In 2017, oil and gas only contributed to 7.6% of US GDP.  Is benefiting this small portion of GDP worth harming the other, much larger part of GDP via those increased transportation costs?  I feel like the answer is no, and so your point #1 seems moot, but I honestly don't have enough data to confirm this.  Does any one else have that data? 

If anything, I would think the US wants high oil prices not to benefit US shale, but to hurt China (trade war and all).  Winning the trade war helps the whole US economy.    

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9 hours ago, Epic said:

If anything, I would think the US wants high oil prices not to benefit US shale, but to hurt China (trade war and all).  Winning the trade war helps the whole US economy.    

This makes sense but the U.S. was exporting quite a lot of oil to China before things got uglier. So, it's a mixed blessing.

If Turkey decides to engage in an open war (highly doubtful but who knows) I'm moving to Iceland.

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49 minutes ago, Marina Schwarz said:

This makes sense but the U.S. was exporting quite a lot of oil to China before things got uglier. So, it's a mixed blessing.

If Turkey decides to engage in an open war (highly doubtful but who knows) I'm moving to Iceland.

Let's move THEM to Iceland!  No, you're right.  Iceland didn't do anything to deserve them.  LOL!  You're going to Iceland!  Yaaay!

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Yes, Iceland has done nothing wrong. Plus, there isn't enough space for all the bad ones there. Now, Greenland, on the other hand...

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On 10/25/2018 at 9:17 PM, Epic said:

Also, you make a good point that US shale drillers benefit from high prices, but the entire US economy suffers from those same high prices via increased transport costs.  In 2017, oil and gas only contributed to 7.6% of US GDP.  Is benefiting this small portion of GDP worth harming the other, much larger part of GDP via those increased transportation costs?  I feel like the answer is no, and so your point #1 seems moot, but I honestly don't have enough data to confirm this.  Does any one else have that data? 

If anything, I would think the US wants high oil prices not to benefit US shale, but to hurt China (trade war and all).  Winning the trade war helps the whole US economy.    

Non-OPEC production has suffered, not from a lack of available oil, but from the threat of low prices.  Private companies can't compete with the deep pockets of states.  That said, stably high prices accelerates the US's march to net oil exports.  It also helps other non-OPEC producers.  Once freed of OPEC's grip, we can stop spending $80 billion/year policing the Middle East - a substantial savings.  That 7.6% of GDP also grows more quickly with stably high prices.  

Then there's the signal this sends to domestic industries: it's safe to invest; become more efficient.  This has a little to do with the price of oil and a lot to do with the US government consistently supporting prices.  With the US government protecting them from OPEC's machinations, companies will invest with confidence - boosting GDP, further weaning the US off oil, and advancing technology. 

Maybe transportation costs increase in the short run, but that's a small price to pay for the long-term gains.

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