Iran sanctions: Middle East stock crash wipes £27bn off markets as Tehran enters oil war

a reply to: greencmp

I would say they were wrong when they did that.

originally posted by: 38181
Can someone break this down " Barney style" how lower price of oil will cause a global economic catastrophe? Seriously, I'm not up to speed in this type of field.

Basically, good money followed bad money down the toilet due the bust of an artificial boom caused by government's interventionist policies.

It isn't that we care about the oil companies but that we lament the disappearance of the capital that could have advanced our economies in ways unforeseeable to policy makers.

We'll never know how our lives might been improved by advancements that weren't realized due to misallocation of resources.

But I am off topic here talking about the economic big picture and how bad policies hurt people rather than the myopic immediate political consequences.

Just throwing this out there.. but hydrogen fuelled cars
are just around the corner.. can be fuelled in less that 5 minutes
where as electric cars take hours to refuel..

I see petrol and diesel cars in there very late twilight years now

originally posted by: Informer1958
a reply to: Cobaltic1978

Oil prices are effecting inflation, which in turn is helping most countries as people feel they have more money in their pocket. Whatever happened to Peak Oil?

I will agree yes for our gas prices, but no to food prices as I have been watching the cost of food going through the roof lately.

Food costs are tied to last years fertilizer and fuel costs, and fertilizer is more tied to natural gas than to crude.

originally posted by: Swills
a reply to: Informer1958

Damn, did anyone see this coming as a result of the Iranian nuclear deal? Again, good job Obama!

You know Saudi Arabia is pissed!

I didnt consider it, but Im now thinking this might be the primary reason for the nuclear deal from our side. Trying tonget Saudi Arabia under control without direct conflict? Seems like the public is being left in the dark on critical information, as usual.

a reply to: ManBehindTheMask

As we all know, markets rise and fall. Iran is back in the game and that's a shock to the market but it will level out. As far as using our own resources, aren't oil prices at its lowest since 2003 because we are using our own oil from the Dakotas?

Either way, neither us are economy expects nor do I pretend to be one.

I bet the Saudis are ticked off. Iran better watch themselves the Wahhabis my fund a IS excursion to Iran.

originally posted by: hillbilly4rent
I bet the Saudis are ticked off. Iran better watch themselves the Wahhabis my fund a IS excursion to Iran.

Not likely. The Iranians are already backing a Shi'a army in Yemen that the Saudis are having to fight.

I'm not sure what the exact status of that conflict is, but it's not turning into victory for the Saudi's and I don't see them entering the ISIS fray to march on Iran.

originally posted by: NewzNose
a reply to: Informer1958

Oil will drop to $10.00 a barrel, then super hyperinflation, and....POP! Global "reset" an our lives abruptly change.

This is bigger than the US.

The hyperinflation will not be in America. Russia is in big trouble though.

originally posted by: ManBehindTheMask

Hyperdeflation, then extreme hyperinflation........

As a buyer of cheap oil how does that create hyperinflation in the US? We do not need to sell oil as other countries do. As example: in 2014 inflation was about 2.3%, and in 2015 due to the lower cost of energy the US inflation was 1.3%, so how does that exploded into hyperinflation.

I just spent an hour in the gym and while walking on the treadmill I was scanning all 10 flat screens TV's channel for the News and there is nothing mention about the falling oil prices.

I believe this is due to the Democrat debate tonight, I believe the government does not want any distractions while millions of people tune into the debates.

originally posted by: Informer1958
Prospect of the Islamic Republic pumping an additional 500,000 barrels a day sends stock markets in Dubai and Saudi Arabia into tailspin

Stock markets across the Middle East saw more than £27bn wiped off their value as the lifting of economic sanctions against Iran threatened to unleash a fresh wave of oil onto global markets that are already drowning in excess supply.

All seven stock markets in the Gulf states tumbled as panic gripped traders. London shares are now braced for a second wave of crisis to hit when they open on Monday morning after contagion from China sent the FTSE 100 to its worst start in history last week.

Dubai's DFM General Index closed down 4.65pc to 2,684.9, while Saudi Arabia's Tadawul All Share Index, the largest Arab market, collapsed by 7pc intraday, before recovering to end down 5.44pc at 5,520.41, its lowest level in almost five years.

Oil prices fell below $30 for the third time last week as traders prepared for the prospect of Iranian oil flooding global markets.
The Islamic Republic has vowed to return its oil production to pre-sanction levels that stood above 3m barrels a day.

“The oil ministry, by ordering companies to boost production and oil terminals to be ready, kicked off today the plan to increase Iran’s crude exports by 500,000 barrels,” the official Islamic Republic News Agency reported on Sunday, citing Amir Hossein Zamaninia, deputy oil minister.
Fears that the Islamic Republic could quickly ramp up production sent Brent crude falling by 3.3pc to $29.43 on Friday - matching lows last seen in 2004.

West Texas Intermediate also slipped back to $29.60, a decline of 4.5pc.
Standard Chartered became the latest bank to raise fears over the oil price by downgrading its outlook to $10, following the likes of Goldman Sachs, RBS and Morgan Stanley.

www.telegraph.co.uk...

Here it comes folks, the oil markets are collapsing due to the Iran sanctions.

Think gas is cheap, just wait a couple of more days, and gas prices may go to a $1 a gallon.

So ATS how do you think this is going to effect our economy in the United States?

The oil companies can kiss my sack -

I will spend my extra money in local businesses

I have heard that Genie Energy is gonna buy things up when the prices bottom out. Then I but they will use their influence to kick prices back up. Dick Cheney has used this strategy many times thus far, AND when you have the primary Rothschilds and commander and chief of American Conservatism, Rupert Murdoch on the board you can see what they are and have been so ready to destabilize the middle east.

Genie Energy's Strategic advisory board is composed of: Dick Cheney (former vice president of the United States), Jacob Rothschild, 4th Baron Rothschild, Rupert Murdoch (media mogul and chairman of News Corp), James Woolsey (former CIA director), Larry Summers (former head of the US Treasury), and Bill Richardson, an ex-ambassador to the United Nations and energy secretary.[2]

en.wikipedia.org...

a reply to: yesyesyes

That's insane.

originally posted by: onequestion
a reply to: yesyesyes

That's insane.

If you have money to invest, this is where you should put it. lol

This is why they have been trying to destabilize the middle East with war and turn American's against Islam with the media.

They do the same thing every time.

a reply to: yesyesyes

Going to have to look more into that.

originally posted by: onequestion
There must be a new technology on the horizon or I would imagine the markets would be reacting strongly.

That`s exactly what I have been thinking!
It seems like the oil industry is having a going out of business sale, selling as much as they can at any price just to get rid of it and make a little more money while they still can.

I don`t believe the official story that low demand has caused an oil glut.

I think Obama isn`t happy about the low gas prices, remember when he was campaigning for president and he said that $5 a gallon gas would be good for America and if elected he would do everything in his power to make that happen.

a reply to: Xtrozero

Don't count on that.

Several people have said in some way or another they do not understand why this will be such a big deal and how it can impact the global economy. This may help a bit.

Every person in the US has between 200 and 300 energy slaves. One example: Food travels an average of 1500 miles before it lands on the table where it is served. Think through that entire process, from acquiring seed to plant, getting it in the ground, feeding it and caring for it, harvesting it, processing it, packaging it, delivering it, retailing it, transporting it, preparing it, and all the attached and associated costs with each step, and finally eating it. All those people, who have jobs in all those companies, who have a hand in that process, rely on energy to make it all happen. That is how each person has so many energy slaves supporting them. Energy to drive to work, to run the machines, to do ... everything.

Now, imagine what happens to your company when the product you manufacture and sell suddenly loses 75% of its value. You cut every cost you can, you lay people off, you close locations, you save every penny you can. And if you don't make it, you go out of business. Now, what happens when it is a nation, not a business? A nation doesn't just close its doors and have a going out of business sale. Especially when, like most nations today, their economies are based on a faulty pyramid of credit financing more credit. You cant solve a credit problem with more credit. The only thing keeping them afloat is real value in tangible goods and services. When that is gone, whole economies can collapse.

Oil is the current monkey on our back. When this passes, and it eventually will, the next will be water. That one is going to be the bad one. We have lived without oil before and we can do it again. But we have never lived without water, and we never will.