The devious Democrats are rejoicing as the stock market continues to fall because of the panic of coronavirus. But now they are extremely happy to see that Saudi Arabia is producing more oil which in turn is causing a cascade effect on the market as it falls even further.
The Democrats have never liked the prosperity of the economy. But one thing is for sure, it will rebound stronger than ever because the changes President Trump has implemented will hold.
The focus is on Saudi Arabia and its attempt to compete with Russia and other nations. Saudi Arabia is taking on the other major oil-producing nations in an attempt to start a price war.
Their choice to produce as much oil as possible has caused the Brent global to decline by nearly 25 percent. This is the worse decline in prices in nearly 30 years. Russia’s refusal to cut production to help stabilize the world’s economy angered them to react the way they did.
The panic from the coronavirus is causing an oil surplus, which is bad for the oil-dependent nation that relies heavily on the sale of crude oil. All the major markets have been affected by this panic move from Saudi Arabia.
Russia and other nations may take a hit in the short turn but for Saudi Arabia, they will bite the bullet more. As their nation is heavily dependent on the sale of their oil for income. They are hoping that their massive oil reserve will support them for a length of time to force Russia and its allies to stop drilling.
The love spat between the two fighting nations is expected to be short-lived as they usually resolve their hatred towards each other. One official admitted that “If a true price war ensues, there will be plenty of pain in the oil markets. Many will be bracing for the economic and geopolitical shocks of a low-price environment.”
But low prices are just going to be a plus for families that are tired of paying high prices at the pump. For them, it is more money in their pockets.
The extra oil may also strengthen the United States pressure on Iran as they are also heavily dependent on the sale of oil. Iran already has enough trouble simply selling their oil because they refuse to submit to the terms of a past treaty. The low prices may be just what they need to grow up a bit and start acting like a responsible nation.
The liberal media is simply foaming at the mouth to paint this as another major epidemic coming to the world. Many news agencies are reporting major layoffs and company closures. They would love nothing more than to cause another panic at the pumps. The facts show that low oil prices may hurt a few people.
But in the end, the billions of others that are tire of paying inflated oil prices will have a breath of fresh air. They can now pay off the other debts that have been burdening them for years. Drivers that deliver cargo for a living are already loving the lower prices.
Stockbrokers may be fearful or the downturn but the stock investor is only benefiting from the slowdown as the stock prices of their investments are lower than ever and ready to be bought up. Which means more money shortly as prices rise.
There are a few that suspect that this is nothing more than a strategy by Saudi Arabia and Russia to strengthen their foothold on the oil market. Sadad al-Husseini who used to work for Saudi Aramco stated that “Saudi Arabia is protecting its market position in the face of a collapse in oil demand, a shrinking physical market, and greatly reduced prices.”
Both of the nations will “come out of this down cycle as stronger players, while shale oil, oil sands, and other costly or politically unstable producers struggle for financing.”
The Russians love to play people behind the scenes for their benefit. Another official stated that “If you are Russia, it’s worth it for you to take a three-month price hit to see if you can knock out U.S. oil exports. They might be correct for three months, but the shale never gets destroyed.”
The United States will only emerge stronger than ever as President Trump has led the nation to oil independence over the past few years.