Saudi Arabia has led OPEC's policy of keeping production steady and defending market share. But Petrie, who has advised the Saudis on oil policy, said Russia and Saudi Arabia now have a common interest in somewhat better prices.
"Both of them are more in need of an improving price picture than I think has generally been recognized," he told CNBC's "Squawk Box." "When you load in their social and security costs, it's quite clear that somewhere around $30 per barrel really begins to pinch them."
Low oil prices are sending shockwaves across major oil producers, particularly countries in the group they refer to as OPEC, a purported cartel (although, there’s something to be said about a group of oligarchical price setters who refuse to act in their own best interests). Oil prices today are below both the fiscal breakeven (the price of oil required to balance the budget) and the external breakeven (the price of oil required to balance the current account) of many Middle Eastern OPEC countries. This means pressure on governments in the region, rekindling memories of the Arab Spring; sustained low prices could result in social unrest, which would come at a particularly vulnerable time given the rise and sustained grip on power ISIS has in Eastern Syria and Western Iraq.
In fact, Russia said that Saudi Arabia, the largest producer in OPEC, had proposed the cut, which would be the first global agreement to lower production in over a decade.
Its only US traders are "SHORT SELLING" on Crude OIL whereas all enemies get together to raise Crude Price...But remember major Oil Drilling companies are US & UK based and they will not allow crude Oil to be sold so low!
Handsome rtns for a month HOLD !
ExxonMobil currently "yields" 3.9% on its dividend. If the share price goes up between when I write this and when you read this, that dividend yield will go down. If the share price goes down, the dividend yield will go ... up! Maybe to 4%. Maybe even better than that.
London Bigboys took UK Brent $38 today because UK cost of Production is $40 whereas its US bigboys broght it down !
The big boys don't know' where crude is headed next!!!
XOM has Dividend history better than Apple or Google no matter what Oil Price is !
Profit from UPSTREAM or DOWNSTREAM ! XOM is strong!
The Board of Directors of Exxon Mobil Corporation (XOM) today declared a cash dividend of 73 cents per share on the Common Stock, payable on March 10, 2016 to shareholders of record of Common Stock at the close of business on February 11, 2016.
US produces 9.6 bpd crude oil (10% worlds production) at cost $36 - with 75% worlds Leading companies based in USA
How can you allow others to sell less than that ?