Quick primer on Saudi Arabia and the country’s significant influence on current global political/economic happenings.
As I’m sure many of you know, the price of oil has absolutely plummeted over the past 18 months. Once at nearly $100/barrel, oil has collapsed past what even the most esteemed commodity engineers predicted to be the “worst-case scenario” threshold.
Your average Joe will end up getting a nice chubster (half-boner) over this development because it implies way cheaper gas prices, which puts extra dough in ya boy’s pocket.
However, what some may not know is that THE MAIN player of this intense plunge in price/barrel is Saudi Arabia. With the 2nd largest proven reserves in the world, almost a 1/3 of total global proven reserves, and the perfect geographic location, Saudi Arabia dictates the global supply and demand of oil. Due to these advantages, Saudi Arabia is “price-insensitive” and can produce as much oil as they want because they can afford smaller margins. The Saudi’s are basically Marlo Stanfield.
This is FREAKIN YUGE because as other major global players have ramped up oil production (I’M LOOKING AT YOU, UNITED STATES OF AMERICA), Saudi Arabia has decided to flip the preverbal bird and say “fuck you” to the rest of the world. The Saudi’s have not shown any signs of slowing down oil production. The US has expanded production to unprecedented levels and may pay for it due to its more “price-sensitive” status.
This is basically equivalent to the Mafia trying to squeeze someone out.
Stay tuned, because this is only going to get crazier. Why? Because a certain Middle Eastern country just had $150BN in assets unfrozen and ranks in the Top 10 in proven reserves. Iran don’t fuck around, and they’re going to want to capitalize on its newly sanction-free status.