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Oil plunges as much as 17% as UAE says support output hike
- theandrewbailey 5y agoOPEC should be cashing in on the market. $100 per barrel is well above Saudi Arabia's $~70 or so per barrel needed to sustain their social programs.
- thehappypm 5y agoLiterally billions upon billions of free money.
- aliyfarah 5y agoOPEC oil ministers know that very high oil prices (120+) is against their interest as it will effect long term demand and accelerate decarbonisation efforts.
- missedthecue 5y agoWhat's the most effective price point for them then?
- londons_explore 5y agoIf they knew that, they'd price-fix the oil to be exactly that all the time.
- mywittyname 5y agoI read somewhere that they agreed to cut production for two years in response to the pandemic decimating the oil industry.
- mythopedia 5y agoYes, and that agreement is set to 'expire' next month. "Starting in May 2020, the OPEC+ agreement called for a decrease in crude oil output by an initial 9.7 million barrels per day (b/d) that gradually tapers through April 2022, the end of the current agreement period."[0] [0] https://www.eia.gov/todayinenergy/detail.php?id=45236 https://www.eia.gov/todayinenergy/detail.php?id=45236
- xony 5y ago
- nine_zeros 5y agoThe money is there for the taking. They just need to supply more barrels. It's the same as charging 1 customer $1m vs charging a million customers $1.
- lkrubner 5y agoNeither part of that is true. If you sell French fries which cost you $1, and you sell them for $2, your profit is $1. If you can raise the price to $3 then you’ve doubled your profits. But your customers know that French fries are bad for their health, and so year after year they promise themselves that someday they will quit French fries completely. When you raise the price to $3, that is when they decide they can really quit.
- missedthecue 5y agoIn theory. But tobacco companies have higher profits than ever.
- baybal2 5y agoPlease note, it's UAE, out of all gulf countries. Normally UAE is the most timid gulf country in front of Saudi influence. Kuwaitis, Bahrainis, and even Qataris are still holding the Saudi line now.
- Tarsul 5y agoI like that the HN title is (right now): "Oil plunges as much as 17% as UAE says support output hike" Whereas the real title is: "Oil records worst day since pandemic as UAE calls for output hike" It really rubs me the wrong way they use the word "worst" because it implies that it's inherently bad. And we all know that it's neither good nor bad but complicated.
- happytiger 5y ago“Worst” probably performs better than alternatives in clickthrough rates.
- quickthrowman 5y agoIt’s not even the ‘worst’ day for oil since the pandemic, oil futures went negative ($-40 a barrel) in 2020. HN headline is much more accurate
- fknorangesite 5y agoMaybe Reuters changed it but the headline is now > Oil prices fall most in 2 years as UAE supports output hike but also, headlines like this get A/B tested. It's possible OP used the headline they saw.
- underscore_ku 5y agoyep, that was the original title
- tamaharbor 5y agoEventually demand will subside, and prices will go down. Probably during the next recession/depression.
- lkrubner 5y agoWhy is baybal’s comment dead? I believe it is correct.