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So can we say that the halving of the oil price is having only a marginal effect on Saudi incomes, for the moment, if they are selling current production against prepaid vouchers?

Is KSA alone in playing the prepay game? If so, then they have a considerable advantage over the other producers.

It is rightly acknowledged that people of faith have no monopoly of virtue - Queen Elizabeth II

by eurogreen on Mon Jan 5th, 2015 at 10:21:19 AM EST
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Saudi income is down, but they have massive $ reserves to draw upon, for years if necessary.

What they are able to do - if I am right - is preserve market share without collapsing the market price even more than it is already, because they are settling in oil, not dollars.

My thesis is that only BP and Goldman Sachs have also been playing the prepay game. Other market players such as Shell and ETF Securities have used exchange and/or OTC forward transactions.

"The future is already here -- it's just not very evenly distributed" William Gibson

by ChrisCook (cojockathotmaildotcom) on Mon Jan 5th, 2015 at 01:55:47 PM EST
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