Since 1980 sevens a black monday crash caused by investor fears over handling of the 1000 crisis. Taylor is here next hour with the latest updates but 1st. Prices are battering the world economy. Ways and the issues next day with. Hello and welcome to cross talk were all things are considered im Peter Lavelle with the coronavirus now officially declared a pandemic the world faces the additional burden of an Oil Market Collapse this comes at a time when demand for crude was already low some are calling this the ultimate perfect storm. Ends is anyones guess. Crude carnage im joined by my guess was me in beirut hes a professor of economics and International Affairs in irvine we have pai and he is an independent economic and political analyst as well as a former commodities trader and in toronto we Cross Alexandre Bruno he is an analyst at gulf state analytics sorry gentlemen crosslike rules in effect that means you can jump in anytime you want and i always appreciate pilot may go to you 1
How low can all prices go crude oil drops below 30. 00 a barrel as a price war between 2. 00 of the worlds biggest producers worsens how badly will that hurt the Global Economy already suffering from the coronavirus pandemic this is inside story. Hello and welcome to the program im norrin taylor the coronavirus pandemic is triggering fears of a global recession businesses around the world a shot stock markets are suffering massive losses on top of all that an Oil Price War between 2 of the worlds biggest producers the dispute between saudi arabia and russia is already pushed the price to its lowest in 4 years brant crude dropped below 30 u. S. Dollars a barrel on monday Global Demand for oil was already low since governments imposed widespread lockdowns and airlines grounded flights because of the disease you know a cartel opec and the International Energy agency both warn that developing countries such as algeria and go and venezuela could suffer the most losing up to 85 percent of th
Their homework and they sense that they can write out a price war much better than the very over leveraged you know 50000000000. 00. Budget constraint to saudi arabia that needs 83. 00 a barrel of oil in order to balance its budgets as well as fund its longer term visions of getting off of oil and expanding its economy under the vision of mohamed bin solomon so its really people have to look at this as a sense of it these are not just necessarily coincidences in my point of view because the ruble was strengthening last year russia has been on a d. Dollarization platform in order to diversify away from dollar reliance in part to fight sanctions thrown against it as well as its partners but also to strengthen its own ambitions to have its currency the currency of its allies really rival if not travel. Its the 47 year old petro Dollar Standard which is the effective monopoly globally with regard to oil or gas pricing so theres a lot of you know its a game of chicken really behind the scen
The larger corporations are not very interested in proving or disproving the value of their food because theyre already making it a 1000000000. 00 on it and theres no reason to do that research. Hello and welcome to cross talk were all things are considered im Peter Lavelle with the coronavirus now officially declared a pandemic the world faces the additional burden of an Oil Market Collapse this comes at a time when demand for crude was already low some are calling this the ultimate perfect storm how this all ends is anyones guess. Crosschecking crude carnage im joined by my guest was me in beirut hes a professor of economics and International Affairs in irvine we have pai and he is an independent economic and geopolitics. Analyst as well as a former commodities trader and in toronto we Cross Alexandre Bruno he is an analyst at gulf state analytics a gentleman crosslike rules in effect that means you can jump in anytime you want and i always appreciate pilot may go to you 1st in irvin
Comes at a time when demand for crude was already low some are calling this the ultimate perfect storm how this all ends is anyones guess. Crosschecking crude carnage im joined by my guess was me in beirut hes a professor of economics and International Affairs in irvine we have pai and he is an independent economic and geo political analyst as well as a former commodities trader and in toronto we Cross Alexandre Bruno he is an analyst at gulf state analytics sorry gentlemen crosslike rules in effect that means you can jump in anytime you want and i always appreciate pilot may go to you 1st in irvine because you got up early as for this program here all right it all happened quite quickly and a lot of analysts werent too surprised by the deal that the russians and the saudis had collapsed there were the russians didnt go along with what the saudis wanted to do. And the saudis reacted and now we have carnage on the oil markets here what is saudi arabias gambit here because you know in th