Saudi Arabia, OPEC and Russia to continue their oil freeze talks on March 20th

Nov 2013
25,918
22,467
None of your business
in Moscow.

http://www.economiccalendar.com/2016/03/12/opec-and-russia-to-renew-oil-output-freeze-talks-on-march-20/

What does this mean?

Well, the landscape is ripe:

1) China's productivity is low, and it continues to slip

China?s Productivity Problem Drags on Growth - Real Time Economics - WSJ

Let's not forget how China beat out the US (Cheney) in securing oil sands in Alberta, but now they are stepping back:

After a decade of Canadian investment, China is pulling back. What now? - Alberta Oil MagazineAlberta Oil Magazine

So this means that the demand still lags, while overproduction continues

And what exactly does that mean?

Well for the US, it means more slow growth in the markets

And of course the gamble, once again, the banks and investment firms make in unstable markets

J.P. Morgan?s exposure to oil, gas debt has Wall Street jittery - MarketWatch

But long term, what does lower oil costs mean?

Well, with the reduced production, oil prices remain low of course (forgive my pointing out the obvious) but it also means cheaper costs of raw materials (plastics, and metal) as the energy costs and the actual components of plastic are petroleum based. Advisement already given to those in the procurement fields:

Falling Oil Prices: What Should Resin/Plastic Component Buyers Do Right Now? - Advanced Purchasing Dynamics

Housing material costs should drop also, again based on energy costs.

Long term this could mean a boom in other sectors, and growth, however, the short scenario while energy costs and the cost of transportation drop, the effects will swing the markets.

Are the talks to be held in Russia going to benefit or hinder this scenario?

Or, as Russia shows cuts in defense due to lack of revenue, will they falsely engineer a rise, in order to maintain their internal growth?

http://www.wsj.com/articles/low-oil-prices-force-russian-defense-cuts-top-military-business-boss-says-1457656937

Best thing we can do is simple:

Keep exporting,,, Keep it up, drive that cost lower, take the hit to our markets.

Drive the economies in Russia and in other Oil producing countries into an unstable state, (better negotiation)

And here's a kicker, support the Asian markets, as the devalue continues, instead of a Chinese investor buying out the Coronado one of our oldest iconic resorts in the US, and insidiously taking over "OUR service industry" one of the last bastions of growth in this country:

Chinese insurer acquiring Santa Monica resort, Hotel del Coronado in $6.5-billion deal - LA Times

We buy them as co-ops...support the Chinese market just enough to convince them to take severe measures against North Korea.

Once we dominate the market again, we negotiate with Russia and get them to fully commit to resolving the issues they have created in the ME.

And we keep pumping poison as a export out of this country,,, in order to achieve that.

I'll add one more benefit from this current activity, the dollar is strong:

http://www.x-rates.com/calculator/?from=EUR&to=USD&amount=1

So 1 dollar = .92 euros, what does that mean? we are not the "bargain basement" anymore for land grabs, only for the risk takers.

What is this directly attributable to? our trade deficit which started to rise sharply in 1982:

http://www.referenceforbusiness.com/encyclopedia/Assem-Braz/Balance-of-Trade.html



Regards
Pace
 
Last edited:
Jul 2014
41,495
11,472
midwest
And Iran is just now ramping up their production of oil.

Their exports are increasing to an expected 2 million bpd by the end of this week.
 
Feb 2011
11,977
8,313
The greatest place on Earth California
I doubt metals or building materials will get cheaper as building is going gangbusters every where I see. scrap prices for steel are still high.
 
Jul 2011
83,259
49,011
Memphis, Tn.
in Moscow.

OPEC and Russia to Renew Oil Output Freeze Talks on March 20 in Moscow

What does this mean?

Well, the landscape is ripe:

1) China's productivity is low, and it continues to slip

China?s Productivity Problem Drags on Growth - Real Time Economics - WSJ

Let's not forget how China beat out the US (Cheney) in securing oil sands in Alberta, but now they are stepping back:

After a decade of Canadian investment, China is pulling back. What now? - Alberta Oil MagazineAlberta Oil Magazine

So this means that the demand still lags, while overproduction continues

And what exactly does that mean?

Well for the US, it means more slow growth in the markets

And of course the gamble, once again, the banks and investment firms make in unstable markets

J.P. Morgan?s exposure to oil, gas debt has Wall Street jittery - MarketWatch

But long term, what does lower oil costs mean?

Well, with the reduced production, oil prices remain low of course (forgive my pointing out the obvious) but it also means cheaper costs of raw materials (plastics, and metal) as the energy costs and the actual components of plastic are petroleum based. Advisement already given to those in the procurement fields:

Falling Oil Prices: What Should Resin/Plastic Component Buyers Do Right Now? - Advanced Purchasing Dynamics

Housing material costs should drop also, again based on energy costs.

Long term this could mean a boom in other sectors, and growth, however, the short scenario while energy costs and the cost of transportation drop, the effects will swing the markets.

Are the talks to be held in Russia going to benefit or hinder this scenario?

Or, as Russia shows cuts in defense due to lack of revenue, will they falsely engineer a rise, in order to maintain their internal growth?

Low Oil Prices Force Russian Defense Cuts, Top Military Business Boss Says - WSJ

Best thing we can do is simple:

Keep exporting,,, Keep it up, drive that cost lower, take the hit to our markets.

Drive the economies in Russia and in other Oil producing countries into an unstable state, (better negotiation)

And here's a kicker, support the Asian markets, as the devalue continues, instead of a Chinese investor buying out the Coronado one of our oldest iconic resorts in the US, and insidiously taking over "OUR service industry" one of the last bastions of growth in this country:

Chinese insurer acquiring Santa Monica resort, Hotel del Coronado in $6.5-billion deal - LA Times

We buy them as co-ops...support the Chinese market just enough to convince them to take severe measures against North Korea.

Once we dominate the market again, we negotiate with Russia and get them to fully commit to resolving the issues they have created in the ME.

And we keep pumping poison as a export out of this country,,, in order to achieve that.

I'll add one more benefit from this current activity, the dollar is strong:

Currency Calculator (Euro, US Dollar) - X-Rates

So 1 dollar = .92 euros, what does that mean? we are not the "bargain basement" anymore for land grabs, only for the risk takers.

What is this directly attributable to? our trade deficit which started to rise sharply in 1982:

Balance of Trade



Regards
Pace
Indeed. I just returned from Mexico where I got an exchange rate of 17 pesos to the U.S.D. It was about the same rate for the Euro and the poor Canadian's were only getting about 11 to the Canadian dollar
I was last there in the spring of 2014 and was getting about 11 Pesos to the U.S.D.