This is my third post about oil. It's easy to check that almost everything I wrote before about oil is coming true.
What's next?
That's what I think about it:
Despite the fact that the OPEC+ deal went through, and I think we even managed to convince Mexico to reduce its oil production, concerns still remain.
Thanks to America for helping Mexico. Naturally, the U.S. only pursues its national interests. You can give Trump the highest score for that, because he took his shale oilers out of harm's way.
Naturally, Saudi Arabia was also in dire need of this deal. And that's why: Saudi Arabia's agreement to the deal gives the kingdom a chance to save some of the resources accumulated over the years of high oil prices when they sold it for another $84.
In 2016, Crown Prince Mohammed bin Salman announced a large-scale and not very realistic economic diversification program, Vision 2030, which, for example, involves building a grand city of the future NEOM (www.neom.com/en-us/) worth hundreds of billions of dollars.
Such plans, combined with an exemplary anti-corruption campaign: I all still remember when 11 princes of royal blood were arrested under the pretext of fighting corruption, including one of the richest men in the world, Al-Walid. It's all were liked by Saudi youth, on whose mood the future of the dynasty largely depends. Over the past half century, the country has experienced a demographic boom: the population has grown from 5 million in the 1960s to the present 34 million.
Today 60% of the subjects of the kingdom are under 30 years old, with a youth unemployment rate exceeding 42%. The goal is to reduce this figure to 30% in the next ten years, despite further population growth.
Naturally, this cannot be achieved without high oil prices.
In general, it should be noted that Saudi Arabia is not as simple as they may seem at first sight.
A bit of history, I think you'll find it interesting.
( I apologize immediately if any feelings may be affected, but the facts of the Kingdom's history are described below.)
We often pronounce the name Saudi Arabia, not realizing that the name of that richest nation comes from the name of the clan that ruled there.
The first information about the Al Saudi family dates back to the 15th century, but it became known throughout the Muslim world 300 years later when Emir Muhammad ibn Saud took under his patronage theologian Ibn Wahhab and made his teachings dominant in this country.
It's enough to look at the history of the Kingdom to understand that this Kingdom is is very interesting from a political point of view.
One shouldn't think that the life of the kings of Saudi Arabia is like the tales of 1000 and one night. Intrigues, palace coups and assassinations have accompanied the entire history of the Saudi dynasty. The history of the third king of this state, Faisal, is indicative in this sense. By overthrowing his older brother Saud, Faisal went down in history as king reformist. He abolished slavery, managed to establish relations with the old enemy Iran, and even contributed to the coming to power in Syria Hafez Assad, the father of the current President Bashar. It was Faisal who managed to buy a controlling stake in the country's main oil company, Saudi Aramco, from America and turned OPEC into the most powerful (once) oil market. But the fateful role in his fate was played by the permission of television broadcasting. During mass rallies against television, Prince Khalid was shot and his brother, who was also called Faisal, vowed to avenge the king.
In 1975, during a reception at the palace, the prince shot his monarch three times at point-blank range. The murderer, by the way, was then beheaded by a gilded sword, after which his head on a wooden stake was exposed to the crowd for 15 minutes.
Here's one more private story for you.
In early 2017, the world of Muslim theologians was shaken by news from Saudi Arabia - a panel of local scientists concluded that women should be granted the rights that other mammals have: camels or even goats. This discovery looked like a turning point in history, because until now women in this country have been considered a household item and this included the royal family name. In 1977, the world was shaken by the tragic love story of Princess Mishaal and the son of the Saudi Ambassador to Lebanon. The couple decided to flee the country. The Princess initiated her death by drowning. A few days later, she dressed up as a man to fly out of the country. But they both got caught at the airport. A 19-year-old girl was accused of depraved behavior was shot. The execution, by the way, was led by her own grandfather. The guy was also killed.
Why did I tell you all this? As you understand, the very history of power formation on the Arabian Peninsula already says that anything is possible in the matter of oil.
However, despite all this, the demand for oil has already fallen by 40%. The oil storage facilities are full. The rent of tankers has risen considerably. Everybody understands this, that's why after the good news price went up, oil fell again.
So it looks like we'll have a drop to $31-30 soon.
Colleagues, if you like such historical essays that help you understand the depth of the questions - write to me in comments, I will know that you are interested)!
What's next?
That's what I think about it:
Despite the fact that the OPEC+ deal went through, and I think we even managed to convince Mexico to reduce its oil production, concerns still remain.
Thanks to America for helping Mexico. Naturally, the U.S. only pursues its national interests. You can give Trump the highest score for that, because he took his shale oilers out of harm's way.
Naturally, Saudi Arabia was also in dire need of this deal. And that's why: Saudi Arabia's agreement to the deal gives the kingdom a chance to save some of the resources accumulated over the years of high oil prices when they sold it for another $84.
In 2016, Crown Prince Mohammed bin Salman announced a large-scale and not very realistic economic diversification program, Vision 2030, which, for example, involves building a grand city of the future NEOM (www.neom.com/en-us/) worth hundreds of billions of dollars.
Such plans, combined with an exemplary anti-corruption campaign: I all still remember when 11 princes of royal blood were arrested under the pretext of fighting corruption, including one of the richest men in the world, Al-Walid. It's all were liked by Saudi youth, on whose mood the future of the dynasty largely depends. Over the past half century, the country has experienced a demographic boom: the population has grown from 5 million in the 1960s to the present 34 million.
Today 60% of the subjects of the kingdom are under 30 years old, with a youth unemployment rate exceeding 42%. The goal is to reduce this figure to 30% in the next ten years, despite further population growth.
Naturally, this cannot be achieved without high oil prices.
In general, it should be noted that Saudi Arabia is not as simple as they may seem at first sight.
A bit of history, I think you'll find it interesting.
( I apologize immediately if any feelings may be affected, but the facts of the Kingdom's history are described below.)
We often pronounce the name Saudi Arabia, not realizing that the name of that richest nation comes from the name of the clan that ruled there.
The first information about the Al Saudi family dates back to the 15th century, but it became known throughout the Muslim world 300 years later when Emir Muhammad ibn Saud took under his patronage theologian Ibn Wahhab and made his teachings dominant in this country.
It's enough to look at the history of the Kingdom to understand that this Kingdom is is very interesting from a political point of view.
One shouldn't think that the life of the kings of Saudi Arabia is like the tales of 1000 and one night. Intrigues, palace coups and assassinations have accompanied the entire history of the Saudi dynasty. The history of the third king of this state, Faisal, is indicative in this sense. By overthrowing his older brother Saud, Faisal went down in history as king reformist. He abolished slavery, managed to establish relations with the old enemy Iran, and even contributed to the coming to power in Syria Hafez Assad, the father of the current President Bashar. It was Faisal who managed to buy a controlling stake in the country's main oil company, Saudi Aramco, from America and turned OPEC into the most powerful (once) oil market. But the fateful role in his fate was played by the permission of television broadcasting. During mass rallies against television, Prince Khalid was shot and his brother, who was also called Faisal, vowed to avenge the king.
In 1975, during a reception at the palace, the prince shot his monarch three times at point-blank range. The murderer, by the way, was then beheaded by a gilded sword, after which his head on a wooden stake was exposed to the crowd for 15 minutes.
Here's one more private story for you.
In early 2017, the world of Muslim theologians was shaken by news from Saudi Arabia - a panel of local scientists concluded that women should be granted the rights that other mammals have: camels or even goats. This discovery looked like a turning point in history, because until now women in this country have been considered a household item and this included the royal family name. In 1977, the world was shaken by the tragic love story of Princess Mishaal and the son of the Saudi Ambassador to Lebanon. The couple decided to flee the country. The Princess initiated her death by drowning. A few days later, she dressed up as a man to fly out of the country. But they both got caught at the airport. A 19-year-old girl was accused of depraved behavior was shot. The execution, by the way, was led by her own grandfather. The guy was also killed.
Why did I tell you all this? As you understand, the very history of power formation on the Arabian Peninsula already says that anything is possible in the matter of oil.
However, despite all this, the demand for oil has already fallen by 40%. The oil storage facilities are full. The rent of tankers has risen considerably. Everybody understands this, that's why after the good news price went up, oil fell again.
So it looks like we'll have a drop to $31-30 soon.
Colleagues, if you like such historical essays that help you understand the depth of the questions - write to me in comments, I will know that you are interested)!
Trade closed: target reached:
and whoever said anything, whatever reason you had, I was right in the end.