We are living in interesting times. We are facing a pandemic, an economic crisis, a stock market brouhaha, and an oil bust.
Today, we focus on the oil bust. In case you haven’t been following things, the Russians and the Saudis got into a pissing contest as to the level of oil output by the OPEC + bunch.
OPEC + is the Organization of Petroleum Exporting Countries which has been around since 1960 and is in the oil pricing manipulation business. The + means Russia is in the talks.
The result of the Saudi Arabia v Russia pissing contest — the Russians would not agree to reduce production levels — was a collapse in global oil prices with some incredibly low prices — 1950s prices — which then translated into lower gasoline prices.