March 9, 2020

FALLOUT: OPEC deal collapse sparks price war: ‘$20 oil in 2020 is coming.’

″$20 oil in 2020 is coming,” Ali Khedery, formerly Exxon’s senior Middle East advisor and now CEO of U.S.-based strategy firm Dragoman Ventures, wrote Sunday on Twitter. “Huge geopolitical implications. Timely stimulus for net consumers. Catastrophic for failed/failing petro-kleptocracies Iraq, Iran, etc – may prove existential 1-2 punch when paired with COVID19.”

The comment came as oil prices are down 30% for the year and a day after Saudi Arabia announced massive discounts to its official selling prices for April. Plunging price forecasts are also coming amid reports of a possible increase in production by the OPEC kingpin from its current 9.7 million barrels per day (bpd) to more than 10 million bpd.

Here’s where we find out how well American frackers are hedged, and how far they’ve really come in getting costs down.

InstaPundit is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to