Bankruptcy and pending poverty are strong incentives to change ones policies . We know that Saudi Arabia needs $106 pb to balance its budget . With Brent at $40 pb , their heavy sour oil only brings $25 pb . If you do your sums 10.2 mbd equals a loss in revenue of $826.2 million dollars a day or $300 billion per year , you can argue that these figures are a bit rubbery , but they are close to the mark . The Saudis have been hitting the Bond and Debt markets very hard so as to cover their tracks and make it appear that they have mountains of money , but this is fast disappearing . I think on the surface the Saudis will be all bravado , but the game breaker is Russia . And the Saudis can't afford to buck Russia , this will be a case of ' oil cuts for security ' The Russians are arming Iran and the enemies of Saudi Arabia . I think that the cuts or depletions have already happened , and once the northern hemisphere thaws out the oil inventories will shrink . Good luck mermaids , stay strong .....
MRM Price at posting:
35.0¢ Sentiment: Hold Disclosure: Held
