The Middle East is trying to cripple north America's oil output and it will take longer than that to accomplish. If gas goes up fracking down south and the tar sands ramp up again too. I think it hinges on us and the Americans agreeing on smaller production numbers which is what the Middle East wanted all along.
Its all about Russia, not North America. The N.A. oil producers are collateral damage. Its having a far bigger impact on Russia, who has been a bad boy lately.
At this point the country suffering the most is Russia.
And that's the target.
Russia just turned off the natural gas pipe flow to Europe too. Some homes are cold right now.
Can't, need the revenue.
I would not be surprised if Putin created a major International incident to scare the price per barrel back up.
Russia is being punished for Ukraine. Or at least, that's what America's allies are trying to do. We'll see how long they can go, or whether Russia will withdraw from Ukraine.
Opec is flooding the market with crude to drive down the price per barrel making north american shale drilling & tar sand development less profitable, rigs are getting shutdown all over the place , There have been lots of lay-offs and drilling programs will get scaled back until prices improve and the price per barrel stabilizes, seen it before and we will see it again , it is boom or bust sometimes in the oilfield.
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North America is collateral damage, where some will be temporarily offline. Russia is the target.
Its being done on purpose should be less than .90 right now... Canada is in trouble with the US supply and weaker demand...
A big part of the problem with Oils vs. Gas prices is Oil is in USD, price at the pump in Canada is in CAD.
Canadian Dollar has dropped 20% since July last year.
By comparison, the Ruble dropped by 55%.
Incomes are dropping, inflation is 20+% (particularly food prices), recession. Government just announced all salaries to be cut by 10%.
And that is the point of America's ally Saudi Arabia increasing oil production. There are small local impacts in N.A., but nothing like Russia.
--> reducing investment in N.A. production is a bonus, but its temporary.
It will be interesting to see how long the Saudi's will support this low price by keeping output high.
It will be interesting to see what Russia does. Right now its seeing whom will outlast whom I think.