Oil war

[jazz]

Hold on to your hats, things are just getting hot, virus plus recession plus oil war. Canada is going to be smoking carcass by the time this is all done.

https://www.bloomberg.com/news/articles/2020-03-07/saudis-plan-big-oil-output-hike-beginning-all-out-price-war Saudis Plan Big Oil Output Hike, Beginning All-Out Price War

[farming101]

Yes, thinking we might have jumped the gun filling the storage tanks. Rack price down 10 cents since then
Oh well...

[Robertbarlage]

Heard Russia is to

[macdon02]

This is directed at renewables. Solar and wind are in the cross hairs. It's gonna cost billions to keep them feasible, keep working. The "friends of Ottawa" depend on it

[macdon02]

If you can't get materials from China for the panels/ batteries, and oil is dirt cheap, it's an extinction event.

[AlbertaFarmer5]

This is directed at renewables. Solar and wind are in the cross hairs. It's gonna cost billions to keep them feasible, keep working. The "friends of Ottawa" depend on it

That is where the CO2 tax comes in. Only way to possibly make fossil fuels less economic than the most expensive energy source is to tax the cheap source into being uncompetitive.

[chuckChuck]

I am looking forward to cheap diesel for spring seeding and some deals on machinery.

[Austrian Economics]

The collapsing price of oil as a result of an all-out effort to boost production fits with the thesis that falling interest rates are deflationary when it comes to commodity prices. In a falling interest rate environment, producers do not have any pricing power whatsoever. Efforts to hoard will always fail. Those who try will eventually throw in the towel and just pour product onto the market at whatever price the market will offer.

It's the mirror image of what happened in the rising interest rate environment of the late 1970s.

Not good news at all for the Canadian oil patch.

[Herc]

I am looking forward to cheap diesel for spring seeding and some deals on machinery.

Don’t you mean cheap solar panels, wind turbines and batteries? wtf would you burn diesel for....

[AlbertaFarmer5]

Don’t you mean cheap solar panels, wind turbines and batteries? wtf would you burn diesel for....

And isn't he supposed to be lamenting lower priced fossil fuels, since that will only encourage consumption and CO2 emissions? There was a thread about hypocritical lefties here lately, what a perfect example right here.

Remember all the posts supporting a CO2 tax because it will raise the price, and therefore discourage consumption?