Husky Energy Inc. cumulative redeemable preferred T.HSE.PR.B

RE:Saudis declare war

[wheeloffortune]

I think it's a bluff in order to get the Russians back to the OPEC+ table and the US on their side in raising oil prices.  Why sell more of a finite resource cheaper?  No way you're not going to pay a premium on additional workers, equipment and tankers to ship the product to increase oil output.  It's a short-term bluff.  They'll be back to the table sooner than you think.  They're both in it to make money.  And the Saudis are going to get more concessions from the US now such as the US more aggressively blockading Iranian oil.  I'll be holding onto my shares and see how long it plays out.

autofocus111 wrote: It's official. A price war has begun. Oil is going to tank hard.

>>>Saudi Arabia plans to increase oil output next month, going well above 10 million barrels a day, as the kingdom responds aggressively to the collapse of its OPEC+ alliance with Russia. The world’s largest oil exporter started a price war on Saturday by slashing the prices it sells crude into foreign markets by the most in at least 20 years, offering unprecedented discounts in Europe, the Far East and the U.S. to entice refiners to purchase Saudi crude at the expense of other suppliers. At the same time, Saudi Arabia has privately told some market participants it could raise production much higher if needed, even going to a record of 12 million barrels a day... But on Saturday, Aramco told customers it was slashing official prices by $6-$8 a barrel across all regions. The dramatic move will resonate beyond Saudi Arabia...In the most significant move, Aramco widened the discount for its flagship Arab Light crude to refiners in north-west Europe by a hefty $8 a barrel, offering it at $10.25 a barrel under the Brent benchmark. In contrast, Urals, the Russian flagship crude blend, trades at a discount of about $2 a barrel under Brent. Traders said the Saudi move was a direct attack at the ability of Russian companies to sell crude in Europe. “This is going to get nasty,” said Doug King, a hedge fund investor who co-founded the Merchant Commodity Fund. “OPEC+ is going to pump more, and the world is facing a demand shock. $30 oil is possible.”

https://www.bloomberg.com/news/articles/2020-03-07/saudis-plan-big-oil-output-hike-beginning-all-out-price-war