/biz/ - Business & Finance

damnit frens my head begins hurting from that oily situation.
there are so many relevant factors in this 27D chess.
>trump subsidizing us-shale industry by tariff
>i have completely no idea on how much that will cost the us economy per month but i guess it will be a lot compared to what they could pay when they used oil priced cheaper from the world market instead of domestic only
>petrodollar wont perish because KSA depends on protection by us
>ruble crashed and russia stopped buying gold, something they didnt even do during the world wars so putin needs cash and therefore higher oil price
>KSA does have the lowest cost on production of oil but they have nothing else and enormous cost so they need a higher oil price
>probably lots of other factors i dont see yet

so when US shale needs 40$/b to operate cost covering KSA and RUS could possibly arrange a world market price of 35$/b to get as much profit from it as possible but then it wont hurt the US very much because the premium they pay to their local producers would only effect to 5$/b. so they probably want to have the price lower at 30$/b.

what do you think frens?