Episode 100 - Saudis and UK discuss cuts | China and Iran COVID-19 | Dean Foreman (API) - a podcast by Ryan Ray & Ellen Wald

It’s our 100th Podcast!

Saudi crown prince, UK's PM discuss cutting coronavirus economic impact
https://www.reuters.com/article/us-health-coronavirus-sa-britain/saudi-crown-prince-uks-pm-discuss-cutting-coronavirus-economic-impact-idUSKBN212193
- Who actually trusts Saudi Arabia to lead effort to combat economic effects of Coronavirus?
- But at what point to we stop looking at what happened and really look at how long can this go on?
- Market will be soft during the closures. The question now is afterwards

Strategic Partnership With China Lies at Root of Iran’s Coronavirus Outbreak
https://www.wsj.com/articles/irans-strategic-partnership-with-china-lies-at-root-of-its-coronavirus-outbreak-11583940683?
- CHinese do not honor unilateral sanctions
- Many Chinese workers in Iran working on infrastructure projects and brought virus with them.

Don’t Fear an Oil Price War
https://www.barrons.com/articles/oil-price-war-why-saudi-arabia-and-russia-wont-keep-prices-low-forever-51583942398

Interview with API Chief Economist Dr. Dean Foreman
- Jet Fuel: before people were sequestered at home, they were substituting driving for flying as flying slowed down. Gasoline usage was UP in February year on year.
- Stocks will build.
- February, refiners were at highest throughput. But with this downturn jet fuel stocks will build up. For any airline that didn’t hedge their fuel costs there will be plenty of cheap jet fuel for the future.
- Prices cut in half
- Jet fuel isn’t included in Phase One trade deal agreement as an energy product so China won’t be purchasing it.
- Quarterly API Industry Outlook: backlog of capital projects - lots of pipelines coming online. Key to dynamic of what’s been playing out.
- Can US producers export oil to India? Harder for the US to export to India because farther from the Gulf Coast and shipping costs are higher.
Quarterly Report:
- Expects global oil market to rebalance by Q4 2020. What does that mean?
- Different world where everyone’s hand is forced to produce more for more revenue instead of OPEC adopting a policy of adopting a “balance the market” strategy which OPEC had believed was better.

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