Iran's Rouhani says countries behind oil price drop will suffer

[Zorro]

Source: Reuters

Iranian President Hassan Rouhani said on Tuesday that countries behind the fall in global oil prices would regret their decision and warned that Saudi Arabia and Kuwait would suffer alongside Iran from the price drop.

"Those that have planned to decrease the prices against other countries will regret this decision," Rouhani said in a speech broadcast on state television as oil plunged to near six year lows on international markets. [O/R]

"If Iran suffers from the drop in oil prices, know that other oil-producing countries such as Saudi Arabia and Kuwait will suffer more than Iran," he added.

Oil prices have fallen 60 percent from their June 2014 peaks, driven down by rising production, particularly of U.S. shale oil, and weaker-than-expected demand in Europe and Asia.

Read more: http://news.yahoo.com/irans-rouhani-says-countries-behind-oil-price-drop-085112635.html

[oberliner]

1. Not to be selfish

But these low gas prices have been a godsend.

[DetlefK]

2. Maybe somebody should tell him that this price-drop is an economic war Saudi-Arabia vs. US:

Saudi-Arabia is deliberately keeping the price low to drive the emerging shale-oil industry in the US into bankruptcy.

Everything else, Russia's problems, Iran's problems, Venezuela's problems... are just unintentional side-effects.

[Adrahil]

3. That may be so, but if it is, it is short-sighted.

So say they drive the the shale producers our of business.... so what? The wells will still be there. The bankrupt companies will sell off assets, and as soon as the price supports the production of those wells again, they will reopen. The Saudis can't really keep those wells out of production for long.

In the mean time, let's enjoy this Saudi-funded economic stimulus.

I'd prefer a Bernie Sanders-style infrastructure bill, but I'll take what I can get!

[SteveG]

4. I think you have it wrong

The Saudi's are targeting Russia and Iran for their support of Syria. Both economies and national budgets need prices to be above $100 per barrel. While the U.S. existing shale oil wells are for the most part still profitable (especially the Marsala Shale) at current prices, it will slow down new drilling until prices go back up.

[bobalew]

5. Don't you mean the Bakken Shale Play?

Isn't the Marsalla Shale play a NatGas find?

[SteveG]

6. It's both

I've visited in the area several times in the last few years, and depending on the well, it's one or the other and sometimes both. This is the same area that produced the first oil wells at the end of the 19th century. The Gas production is far more significant true, but they are producing oil in the area.