Russia Vs Saudi Arabia Oil Price War Explained

Russia Vs Saudi Arabia Oil Price War Explained:

Our Economy is drastically going down. People who buy shares Please be careful in investing, we have been warning you for so long now. So today’s scenario is The Asian Continent has decreased by 6%. India’s Stock market has gone down 5%. 

Who much money did we lose?

Nearly 6.5 Crore rupees in one day. The same situation is also in Japan. The reason is Corona Virus, but before the virus also the World’s Economy was not good. Next reason is the Price war between Russia and Saudi Arabia. 

What is this Price War?

The main reason is Oil. 

Why did it happen?

What are the reasons?

Let’s discuss in detail in this post.

Beloved Tamil People. Greetings from Tamil Pokkisham.

A Big thanks to the Subscribers, We have reached 7,00,000 Subscribers. We need your support like today till the end. This is our Humble Request. 

Annunaki Debunked in another channel.

What is your response?

Many asked these questions.

Annunaki is a Conspiracy Theory. There is no need for debunking. Annunaki is a fantasy film or a Conspiracy Theory. Science channels should not waste their time in Debunking this topic. They have a lot of issues in their hands such as Corona Virus. There is Science behind Corona, there is Science behind Fall of Gold Price. Science is there in Air Pollution. The usage of plastics is also in Science. There are so many things they can debunk. Everybody knows that it is a Conspiracy theory. People who read those posts will read it and just go. So Thanks to People who are debunking. We will keep posting about this Conspiracy theory and people who want to debunk will have a lot of work to do. 

Let’s get into the topic now. 

Today the Crude Oil Price has crashed 30%. Suddenly this crash was felt only in 1991 and in has happened in 2020. 

Will the price of petrol and Diesel go down?

There is a possibility for the price to go down. 

Why the price has gone down fro Crude Oil?

We should analyse a news which came in three weeks ago. Russia’s has an Oil Refinery. This Oil refinery was economically banned by America. 

Why this ban?

They say that Russia buys Venezuelan oil stocks and refines the oil. This ban was told to Russia’s President’s Friend Rosneft. This news happened three weeks ago. Russia has a scar in its heart. 

We need to learn about OPEC. 

What is OPEC?

What is the history behind OPEC?

We have already discussed this topic. Please See the Description in the video. 

Russia Vs Saudi Arabia Oil Price War Explained

OPEC means Organization of Petroleum Exporting Countries. There are 14 countries in this OPEC. These countries produce petroleum. These countries also have reserves of crude oil. These countries form OPEC. 

What is OPEC’s Job?

They will keep watch when the Oil price is going down and up. So they inform the countries how much barrels of Crude oil will be needed. SO for Ex: When the Demand for Crude Oil is high in the world. These countries will join forces to produce Crude oil in large quantity. 

Due to the Corona Virus, many countries companies have asked their employees not to come to office. So the car drive from House to Workplace is cancelled. Schools and Colleges are shut, so the buses stopped. Many industries are shut down now. Many people are staying in their houses. So the usage of Diesel and Petrol is low. In China, the usage is very low. 

Russia Vs Saudi Arabia Oil Price War Explained

So OPEC Countries if they produce Oil on a normal rate cant sell those oil to any countries. OPEC is controlled by Saudi Arabia. OPEC + countries are controlled by Russia. The agreement between these two countries will come to an end in March. SO to sign another agreement there was a meeting in Vienna for 6 days. In this meeting, it was decided that OPEC and OPEC + Countries should reduce their production. Nearly 1.5 Million Barrels per day will be cut. This order was good. When the Production goes down, the demand is low, so they can manage the price accordingly. 

Saudi Arabia said to Russia that it has to reduce 500,000 Barrels a day. In return, the OPEC countries all together will reduce 10 Lakh Barrels. Russia as previously discussed in the post had a scar for Banning its refinery. Russia now has been asked to reduce 500,000 barrels. 

In the world, the first country to produce a high number of Crude Oil is Saudi Arabia followed by Russia. But America is leading the production of Oil Crude. America has SHELL gas they are producing it in large amounts. They are self Dependent when it comes to Crude Oil and they also import it. 

Russia says if it reduces the production and OPEC countries also reduce their production American Shell gas will not lower its production. America will keep on growing and we will suffer. 

OPEC Countries say that it is irrelevant and ask Russia whether it will agree or not. Russia denies the request, it also says that it will quit the OPEC+ Countries. SO from April, any country can mass-produce Crude Oil and Russia will leave OPEC+. 

This is a huge issue for Saudi Arabia and OPEC Countries. Two days ago there was news from Saudi Arabia about a Mutiny and three of its highest officials are arrested. Aramco is now in the Stock Market. There is a huge reason behind this, in the coming 15 years, these Petroleum Countries will be hailed by other countries. 

Many Say that after 15 years we will not need Crude oil or Diesel or Petrol. 

Why are they saying this?

Many Countries are going to go after other resources. They are going to produce Electrical Cars. So within 15 years, OPEC countries have to earn the maximum profit. 

What did Saudi Arabia say?

Saudi Arabia says that the countries which buy crude oil from them will receive a discount of 6 to 7 USD for one barrel. Today they have announced it. This news has turned to be an alert for the World Countries. This is for the OPEC countries. 

Russia Vs Saudi Arabia Oil Price War Explained

The issue is One Person is selling one barrel for 100 Rs. But another person says he is willing to sell it for 10Rs.  So we will buy the barrel from the person who sells it for 10Rs. So this is not a loss for that person because there is no one to buy the Oil because of Corona Virus. Saudi Arabia sells a barrel for 30 to 40USD. When Saudi Arabia says this all other countries also have to reduce their rates. This is the reason behind the 30% Decrease in price. 

Russia now has to reduce its rate, if not the countries will buy it from Saudi Arabia. This is Price War.  Saudi Arabia has announced that it is ready to lower the price and can supply for so many years. 

Are Saudi Arabia following the OPEC rule?

No. OPEC rule they have negotiated and they have declared that they will function independently. 

America was against Russia. Russia moves a piece against Saudi Arabia. Saudi Arabia has moved a piece against all countries in the world. This will reduce the cost of Crude oil and it will affect the Stock market greatly. Economic depression will come again. 

All Countries will reduce their rates for Crude Oil. We will have to discuss the debts. We know that America is a Developed country with a strong economy. But America’s Gas and Oil Companies are in a situation that they have to pay back a debt of 86 Billion USD. This debt belongs only to some companies. This report has been given by Moody’s Investors Service. 

So America has payback the debt. But the Corona Effect on the world has to decrease and has to go to a normal stage. It may take nearly 6 to 8 months. 

Due to Saudi - Russia Price war, the profits gained will go down. Because the price has gone down so the profit will also go down. So can they pay back their debts? Not only America the world countries have a lot of debts. The debts are given by banks. So if they don’t pay back the debts the banks will go bankrupt. This is like YES bank there are many loopholes here also. 

So if we look at this price war as an issue between the two countries. But this is a warning to the International Community. 

How will the economy move next?

Many analysts say that within two weeks there will be worldwide Economic depression.

What truth lies behind this prediction?

We will discuss in another post. 

Comments about this post are Most Welcome.

"நல்லதை பகிர்ந்து நல்ல சமுதாயத்தை உருவாக்குவோம்"

"நன்றி வணக்கம்"

"Sharing Good things to Create a Greater Community"

"Nandri Vanakam"


Leave a Reply

Your email address will not be published. Required fields are marked *