Re:Stocks Halt; Oil and Bonds Drop in Sync
by ajross on Wednesday March 18, 2020 @01:34PM
(#22619133)
Saudi and Russia both, really. The first escalated and the latter walked away, which is what caused the crash last week.
But really, it doesn't matter. What was happening at Saudi pumps last week was a speculative event, the size of the petroleum market for the next few months has absolutely nothing to do with OPEC decisions, it's about quarantine restrictions on travel all over the world.
Saudi might continue pumping, but as others are pointing out when the tankers and storage facilities fill up, they'll stop. Because there's nothing else to do.
But really, it doesn't matter. What was happening at Saudi pumps last week was a speculative event, the size of the petroleum market for the next few months has absolutely nothing to do with OPEC decisions, it's about quarantine restrictions on travel all over the world.
Saudi might continue pumping, but as others are pointing out when the tankers and storage facilities fill up, they'll stop. Because there's nothing else to do.