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Saudi Arabia sells oil at US$6-US$8 discount a barrel to undercut everyone else when prices already falling source: https://mothership.sg/2020/03/saudi-arabia-oil-price-crash/ Saudi Arabia announced a stunning discount in oil prices on Sunday, letting customers in Asia, the United States and Europe snap up supply at US$6 to US$8 discount per barrel. This measure sent oil prices and stock indexes into free-fall, as crude oil traded at US$28 to US$32 per barrel. As recent as 2014, prices went as high as US$115 per barrel. U.S. consumers will get cheaper fuel prices United States consumers are likely to see lower prices at the gas pump. American oil producers, though, could be hurt by the oil price slide, as America leads the world in output. Going against logic Instead of cutting oil production to stem falling prices, Saudi Arabia — the world’s second-largest producer — this weekend said it will actually boost oil production in a dramatic reversal in policy. Days before, Saudi Arabia, the rest of OPEC (Organization of the Petroleum Exporting Countries), and Russia failed to agree on production cuts to combat falling prices stemming from coronavirus epidemic fears that will halt world economic growth. Oil prices had already fallen more than 30 percent in 2020 before Sunday’s further collapse. Saudi strategy to grab market share Saudi Arabia and other OPEC members sought to cut production to shore up oil prices. But the once-powerful cartel can no longer move markets alone without Russia’s participation. Russia, which is not an OPEC member, has recently been coordinating with the organisation. However, Russia did not go with production cuts and the talks ended failed on Friday, March 6. OPEC and its allies announced no new reductions and didn’t even commit to extending current cuts. Saudi Arabia going head-to-head with Russia The logic of cutting oil prices at this stage is due to Saudi Arabia taking on Russia for dominance. If Saudi Arabia cannot move prices upwards, its cutting of prices is to retain market share. In all, Saudi Arabia is cutting the oil price for the U.S. market by S$7 per barrel, to Europe by S$8, and Asia by S$6. Such a strategy is paired with Saudi Arabia’s ability to rapidly increase production and unilaterally cutting crude oil prices for everyone. Low oil prices are bad for Saudi Arabia’s budget though. But because Saudi Arabia’s production costs are the lowest in the world, lower prices can hit other producers harder. Even though Russia is being targeted, American oil and gas producers, including the fracking industry, will also be hurt Despite this unilateral move, Saudi Arabia is not guaranteed to come out on top in a prolonged face-off with Russia. It’s not even clear if there are going to be buyers for that oil. Lower fuel prices can offer some relief to the airline industry, with travel cancellations leading to flight cuts. World markets hit The oil price shocks reverberated throughout financial markets. Dow futures dropped more than 1,000 points. S&P 500 futures hit their limits after tumbling 5 percent. The 10-year Treasury note yield fell below 0.5%, a record low.

Hi, recently i had pump a full tank for my car. My pumping habit had not changed,but price of petrol had dropped slightly.But is also becos of price dropped ,i noticed i pumped more than my tank can hold. 50.25 litres for a 1.4 getz??to confirm this i gonna try on other brand petrol station .if is the same, meaning my car got some problem existing..just wan to share whether anyone encountered this? thanks.

[extract] According to a study done by Malaysia

In Italy, bicycle sales have surpassed that of car sales. Last year, 1.75 million bicycles were sold in the country as compared to 1.748 million vehicles sold. This is the first occurrence since the Second World War. Several factors could have contributed to this phenomenon. Firstly, the European debt crisis that resulted in job losses could have made some Italians turn to lower cost of transportation. In addition, escalating fuel prices and high costs associated with maintaining a car could have affected car sales as well. Recently, petrol prices hit

[extract] On 5 Aug 11, S&P downgrades the US credit rating from AAA to AA+. The following day, world stocks plummeted due to concern over the US economic health. The fear of a recession was in everybody

I'm sure you don't need me to tell you that petrol prices in Singapore seem to be constantly going in only one direction of late. So this week's news comes as no surprise. As someone who utilises the car almost everyday, the rising prices can be quite disheartening, even with whatever discounts we can squeeze from whatever cards or offers we make use of. That said, I actually came across an article a while back, comparing prices of petrol in the US and various European countries. And when I compared the prices, and calculated our own after currency conversion, we don't seem to fare that badly actually (P.S. The article is here by the way) The problem is the disparity, between incomes and prices of consumer goods. The difference is simply too great. I mean, close to $80 for a full tank of fuel every week is ridiculous for the average income we're getting in Singapore, and it adds up to quite a substanstial amount every month. This applies to quite a lot of other things in Singapore as well. What can we do about it though? Well, election is coming. Vote wisely...