Oil and USA dollar problem for USA covid 19 New oil

[crzy]

Oil is cheap and oil reservers are full.

The pandemic lowers the demand for the Oil and since many countries are on the hard lockdown, it affect so much this industry and there's a lot of reserves right now that make Oil a lot cheaper compare before. In my country a bigger oil company are already announced that they will stop their operation in one of their big refinery and that is because of this pandemic. We are all waiting for the vaccine and for sure everything will recover when this pandemic is over.

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[Del137]

Dollar is not only suitable for oil puchases, still a lot of companies in the world use it for any kind of payments. Oil situaiton is not enough to cause big problems with dollar

[Vishnu.Reang]

Has anyone noticed the jump in crude oil prices after Biden won the elections? Brent crude was trading at $38 per barrel before the elections and now this has jumped to $43.50 per barrel. The industry expects Biden to crack down on US shale oil production and this is going to benefit the OPEC nations. Also, if this happens then US might be forced to import more crude oil from the middle-east. In the long-term, I expect the crude prices to rise to three digit levels. 

[zasad@]

Has anyone noticed the jump in crude oil prices after Biden won the elections? Brent crude was trading at $38 per barrel before the elections and now this has jumped to $43.50 per barrel. The industry expects Biden to crack down on US shale oil production and this is going to benefit the OPEC nations. Also, if this happens then US might be forced to import more crude oil from the middle-east. In the long-term, I expect the crude prices to rise to three digit levels. 

If oil costs more than $ 100, then a financial paradise will begin in Russia If you are talking about the prospect of 10-20 years, then I agree with you,
because every year it is more difficult to extract oil and its price will rise.
But I saw Biden's interview where he said that he would not prohibit the production of shale oil.

[aesma]

That's because there are government controls on prices, and politicians play with it. In some other oil rich countries gas is very cheap or almost free, in the end it's the government subsidizing the price, nothing to do with free markets.

And what are the prices for gas and petrol in the USA for the population?
95 gasoline in Russia costs $ 0.57 per liter($ 2.16 per gallon,  if in 1 gallon 3.785 liters)
1000 cubic meters of gas costs $ 88

There are very good statistics for Europe and Russia on this site, but you will have to use a translator
https://svspb.net/novosti/stoimosti-gaza/

Even in the US it varies widely, depending on local taxes and also where refineries are. 1 year ago I did a road trip in California and I paid between 3,8$ and 4,5$ a gallon, much more than I expected, which wasn't good news since I rented a gas guzzling V8 SUV !

No wonder Teslas sell a lot, there.

Has anyone noticed the jump in crude oil prices after Biden won the elections? Brent crude was trading at $38 per barrel before the elections and now this has jumped to $43.50 per barrel. The industry expects Biden to crack down on US shale oil production and this is going to benefit the OPEC nations. Also, if this happens then US might be forced to import more crude oil from the middle-east. In the long-term, I expect the crude prices to rise to three digit levels. 

The green new deal plan (or similar, see also what's happening in Europe) has a goal of using less and less oil every year. Imagine when all cars will be electric in 10-15 years, planes flying on hydrogen, etc. Why would oil be expensive if there is less and less demand ?

I expect though that buying oil will be expensive, because there will be a carbon tax on it, but that money won't go to the oil companies. Several oil companies see the writing on the wall and are investing in renewable energy, for example French oil giant Total is building thousands of windmills and large solar farms !

[Vishnu.Reang]

If oil costs more than $ 100, then a financial paradise will begin in Russia If you are talking about the prospect of 10-20 years, then I agree with you,
because every year it is more difficult to extract oil and its price will rise.
But I saw Biden's interview where he said that he would not prohibit the production of shale oil.

Obviously countries such as Russia are heavily dependent on oil revenues and the cheap shale oil from the United States was responsible for the economic downturn in these countries since 2014-15. Earlier the cost of production of shale oil was around $80 per barrel. But with modern technology, this has been reduced to $30-$40 per barrel. So unless there is some restriction on shale oil production, the prices won't go to the previous levels.

[jademaxsuy]

I think I am getting your point here but the covid19 vaccine is not a joke and not only the US economy wanting it to be created for their are many countries racing in the making of these vaccines. These different countries are represented by different fiat currencies and that US dollars could not really be mean a back by only oils but it is the economy of the USA. The assets and the large contributing development are the one that makes the real value of US dollars. Besides it was the middle east countries that are having reservr money through oils. Hopefully oil sources coulr be replenish for if it not then high chance we will going to face a real problem in the future without these resources to which almost commodities uses oil.

[baundul]

The economy is a driving force that rises and falls. Its rise and fall depend on many materials not just dollars or oil. Before the discovery of oil, the Arab countries were zero. They are holding the market from oil and from the US dollar. Whether the COVID 19 vaccine enters the market or not, the world economy is gradually coming out of the negative effects. In that case they can use other currencies if they do not get dollars. The next time is very important for America.

[palle11]

The next time is very important for America.

That is the next era. By January 2021, America will have a new government to take them through the next four years and this era looks important because there are many factors that may change the economy of different nations. Oil lately is not steady and that is a determining factor for economic growth of producing countries depending on how they manage it and the influence of regulating blocs which America can be influential in their policies. Also bitcoin is growing plus halving and whether ETF is going to be effective or not can also be influenced by America. So it is a year that America need to have a public policy that is more active .

[AndySt]

The economy is a driving force that rises and falls. Its rise and fall depend on many materials not just dollars or oil. Before the discovery of oil, the Arab countries were zero. They are holding the market from oil and from the US dollar. Whether the COVID 19 vaccine enters the market or not, the world economy is gradually coming out of the negative effects. In that case they can use other currencies if they do not get dollars. The next time is very important for America.

It is probably too early to talk about getting out of the negative consequences, given that the number of States that impose partial or even full quarantine on their territory is growing again and it is completely unclear when all this will end. There is also no confidence that the upcoming pre-Christmas period, which provided a significant increase in trade turnover and provided the lion's share of annual income for small businesses, will now be able to show comparable results. Despite some support from the state, the service sector is in a difficult situation and not all subjects of the sphere will be able to survive the pandemic.

[BrewMaster]

The oil is not in high demand...

it is still in high demand, don't look at its price and don't let that fool you. the price was artificially brought down as part of the cold war that has been going on in middle east to damage the economy of the countries that rely on selling their oil.

[CarnagexD]

Either USA will up their game to pillage more lands in hopes of finding oil or they will have a big problem with their oil-based economy. That being said, it's going to be a big problem to either side of the issue. Especially now that Electric vehicles are gaining more and more traction to the market. As long as they change their currency basis, they shouldn't have a problem.

[aesma]

CarnagexD : you mean the Lithium dollar ? :d The US economy isn't really based on oil, they burn too much of it yes, but it's not mandatory. What brings money in these days in the US is technology, entertainment, medicine...

The oil is not in high demand...

it is still in high demand, don't look at its price and don't let that fool you. the price was artificially brought down as part of the cold war that has been going on in middle east to damage the economy of the countries that rely on selling their oil.

What do you mean by cold war ? Wars in the ME usually make the price of oil go up not down. Oil is needed at a high level, but that level is lower than it was, and much lower than potential production, that's the issue : overproduction.

[jaysabi]

https://en.wikipedia.org/wiki/List_of_countries_by_oil_production
https://ru.wikipedia.org/wiki/Cпиcoк_cтpaн_пo_дoбычe_нeфти
Even in 2014, the United States ranked 3rd in the world in oil production after Russia and Saudi Arabia.
I have no idea how badly the shutdown of US oil production will affect the unemployment rates in the country.
But I think it will cause a lot of other problems.

While this is outdated data, the US is now the largest oil producer in the world. The shutdown will very greatly affect US employment numbers, as a ton of jobs have been created through the new energy boom, and this has ripple effects of creating more jobs around that industry that further ripples throughout the economy.  A loss of jobs in the single biggest employment gainer will have far-reaching consequences for employment numbers in unrelated industries even.

[wxa7115]

Oil will always be associated with the US dollar.  When we look at the global market, all of the transactions are done with the oil / dollar binary.  for now there are more important things than oil.  Like Covid-19 vaccine studies.  When the world returns to the old normal, oil will return to its old days and reserves will decrease and replenish. 

It doesn't seem as if the world is ever going to return to normal, for what I have read it seems the vaccine could offer protection for one year and that's it, which means that people will have to apply the vaccine every single year and in my experience very few people have that kind of discipline.

Also just because the price of oil has for the most part be associated with the US dollar that doesn't mean that is going to keep being the case, many countries want to change this and when that happens I'll not be surprised if they begin to accept their own currencies in exchange for oil or even gold in exchange for oil.

[7788bitcoin]

But this covid vaccasines is not for ever so at some point demand Will end.... The USA need new thing then what the whole world will need from them?  Oil might not be since OPEC use euro and Russian rubles currency!

USA is exporting more food and beverages than they do oil and the world is changing as we will be migrating to cleaner energy in the near future and we might not need oil in the next 10 to 20 years as all the vehicles will be migrating to electric and we will use much lesser oil. Another big selling point is their aircraft manufacturing sector as well as the weapons sector and then the Pharmaceutical industry.

[zasad@]

But this covid vaccasines is not for ever so at some point demand Will end.... The USA need new thing then what the whole world will need from them?  Oil might not be since OPEC use euro and Russian rubles currency!

USA is exporting more food and beverages than they do oil and the world is changing as we will be migrating to cleaner energy in the near future and we might not need oil in the next 10 to 20 years as all the vehicles will be migrating to electric and we will use much lesser oil. Another big selling point is their aircraft manufacturing sector as well as the weapons sector and then the Pharmaceutical industry.

Experts say the future will be in gas-powered vehicles. Gas engines are more environmentally friendly and the combustion of gas produces fewer harmful substances to the atmosphere. In colder climates, battery life is greatly reduced and therefore requires expensive equipment to recharge vehicles. Now in the world electric cars are less than 1%, but what will happen when the number increases to 20-30%?

[STT]

Even in 2014, the United States ranked 3rd in the world in oil production after Russia and Saudi Arabia.

The problem USA has in its production is the cost to extract is much higher then Saudi Arabia.   OPEC can force other markets out by dropping the price as they have the lowest costs to produce and a great quantity.   USA isnt in quite the same fix as Venezuela which has great reserves but too high a cost  to produce (then also refine also) but its bad enough to close down a quarter maybe half the total production because its no longer profitable in the longer term.    The correct course for USA would be in reducing its own consumption of oil, if legislation favored cars to use natural gas as fuel it would allow USA to export more oil instead I believe there is still a net import despite the large amount of production.
   Its worth noting Russia has a greatly aging range of oil fields in the main and suffers from similar difficulties in costs also, however they do not use up as much energy as USA so can balance trade more easily and this helps their currency in some support.

[aesma]

But this covid vaccasines is not for ever so at some point demand Will end.... The USA need new thing then what the whole world will need from them?  Oil might not be since OPEC use euro and Russian rubles currency!

USA is exporting more food and beverages than they do oil and the world is changing as we will be migrating to cleaner energy in the near future and we might not need oil in the next 10 to 20 years as all the vehicles will be migrating to electric and we will use much lesser oil. Another big selling point is their aircraft manufacturing sector as well as the weapons sector and then the Pharmaceutical industry.

Experts say the future will be in gas-powered vehicles. Gas engines are more environmentally friendly and the combustion of gas produces fewer harmful substances to the atmosphere. In colder climates, battery life is greatly reduced and therefore requires expensive equipment to recharge vehicles. Now in the world electric cars are less than 1%, but what will happen when the number increases to 20-30%?

I think your experts are paid by the oil industry... Never heard someone call internal combustion engines "environmentally friendly" ah ah. Electric cars don't send anything to the atmosphere, even during production, so there is no contest there. Of course you must improve electricity production, if you have only dirty coal plants, it doesn't work, but coal plants are also being rapidly replaced...

For cold climates there are various solutions, including hydrogen fuel cells. Still an electric car, but no battery (in fact there is a small battery, like an hybrid).

[pankowri]

When the supply is more then the demand will be decreased. The downfall of USA dollar is mainly indicates that stop printing money, the less supply can increase the demand. The modern world can't think without electricity and oil. Without oil, industry can't be formed well. Ultimately people will suffer a lot. Covid-19 is another way by which many people are trying to do business with us in many ways. This the real scenario of the world.