It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
Originally posted by xuenchen
Originally posted by boncho
reply to post by xuenchen
Hi circle, meet your argument.
So they have to pay more for their imports if imported goods costs go up? Yes/no?
The profits are more than the expenses from general price increases on goods and materials.
And they still get more profit from direct oil sales.
This is why they have amassed all that wealth.
Dow Chemical Company (NYSE: DOW), the Midland, Michigan-based diversified manufacturer and supplier of products used mainly as raw materials in the manufacture of consumer products, today announced the official formation of Sadar Chemical Company. Sadara Chemical is a joint venture between Dow Chemical and Saudi Arabian oil company Saudi Aramco.
Dow and Saudi Aramco also announced the Board of Directors and seniors officers of Sadara Chemical. The two companies said that the Sadara Board includes eight members, with Abullatif A. Al-Othman acting as Board Chairman. Al-Othman is the Senior Vice President and Engineering and Project Management at Saudi Aramco. Dow’s Senior Vice President, James D. Mcllvenny will serve as deputy Chairman of the Board.
Strategy & Objectives
Many of the surplus oil revenues are invested in low-risk assets, such as sovereign debt instruments.
The resources are managed by the Saudi Arabian Monetary Agency (SAMA).
Kingdom Holding Company (Arabic: شركة المملكة القابضة) is a public holding company headquartered in Kingdom Centre in Riyadh, Saudi Arabia, and is the largest company in Saudi Arabia. It is controlled by Prince Alwaleed Bin Talal Bin Abdulaziz, and is headquartered in the city of Riyadh. The company is publicly listed in the Saudi Stock Exchange, but only 6% of the shares are public, the remaining 94% being owned by Prince Alwaleed.
The company describes itself as a diversified investment company, whose interests include banking, real estate, telecommunications, broadcasting and media, entertainment, hospitality, computers and electronics, agriculture, restaurants, upscale fashion, retailing, supermarkets, tourism, travel and automotive manufacturing.
Its international investments include (or have included)
......many more listed
Includes names and holding % of shareholders that own 5% or more in addition to strategic shareholders.
Subsidiaries, Investments, and Related Entities
Includes the company's subsidiaries, direct investments, funds, developments and projects that the company owns or co-owns. Also includes other related entities such as sister companies, companies under management, etc.
Originally posted by VonDoomen
reply to post by boncho
do you really think there is no feasible way for them to profit off this type of manipulation?
your one of the most annoying people to come across here on ATS. You seem to enjoy arguing just for the sake of arguing.
The petroleum sector accounts for roughly 80% of budget revenues, 45% of GDP
$434.67 Billion US dollars at current prices
Saudi Customs revealed that the total value of imported goods to the country in 2010 increased by 12% from 2009 to reach SAR 400.8 billion (US$107 billion)
Due to the fall in the Kingdom's oil export revenues in response to an over supply in the international oil markets, Saudi Arabia has been faced with the problem of a current account deficit since the mid 1980s. The balance of payments’ current account deficit during the period 1986-1989 were SR-43 billion (U.S. $11.5 billion), SR-36.6 billion (U.S. $9.8 billion), SR-27.5 billion (U.S. $7.3 billion), and SR-35.7 billion (U.S. $9.5 billion) respectively.
The Desert Storm war, coming at the start of the fifth development plan (1990-1994), had contradictory effects on the Kingdom’s foreign trade and balance of payments. The sharp increase in the value of oil exports at the start of the fifth plan period resulted in an average annual trade balance surplus of SR75.1 billion (about U.S. $20.00 billion) during the period from 1990 to 1993 (see table 11). On the other hand, The substantial cost of the war and the immense outflow of related payments had a substantial negative impact on the overall balance of payments' position. Thus, as table (15) shows, the average annual current account deficits during the years 1990 to 1993 were SR15,6 billion (U.S. $4.2 billion), SR103.3 billion (U.S.27.5 billion), SR78.1 billion (U.S. $20.8 billion) and SR54.7 billion (U.S. $14.6 billion) respectively.
Together with other Gulf oil exporters, the UAE has been in focus as a possible source of alternative supply for at least some of Iran’s crude. Widening sanctions have seen several Asian clients of Iran’s oil, including top importer China, send high-level delegations to the region in the last few weeks.
Saudi Arabia predicts a budget deficit of 40 billion riyals ($10.7 billion) next year as the Arab world’s largest economy invests to create jobs and reduce its dependence on oil.
The government expects to spend 580 billion riyals, 7 percent less than this year, the Riyadh-based Finance Ministry said on its website today. Revenue is expected to fall 26 percent to 540 billion riyals.
Originally posted by mastahunta
Obama cut oil Output from his country?
Stocks vs Options
So, you ask, what are the significant advantages of online options trading over stock trading?
Well, let's start with returns. Financial returns can be so much more rewarding with options. Take the example below, for the time being assuming there's no commission charges.
Stock ABC is valued at $50 and you invest $1000, therefore 20 shares. The next day it reaches $51 and you cash out. Your profit is only $20, or 2%.
$51 - $50 = $1
$1 x 20 shares = $20
$20 / $1000 = 2%
Now, let's say you bought the option for ABC, call it .ABCKL, for $5 per contract, and you invested $1000, so 200 options. Say the delta is .99. If ABC went up $1 the next day, .ABCKL would be worth $5.99 per option, a return of about 20%.
$5.99 - $5.00 = $.99
$.99 x 200 options = $198
$198 / $1000 = 19.8%
So which would you rather have: 2% or a whopping 20%? And think about this as well: ABC only went up $1 in one day, not unreasonable. But by buying the option instead of the stock, you would have returned 20% in just one day because the stock went up only $1!! Many investors don't even return 20% in one year!
Nigeria, Venezuela and Iraq raised crude oil exports in December from a month earlier while other OPEC (OPCRTOTL) members including Saudi Arabia decreased shipments, according to the Joint Organization Data Initiative.
Saudi Arabia has dramatically shifted gears by cutting crude production, even as oil bounced around near 30-month highs, to guard against a sudden price slump caused by slowing global demand.
Despite the Saudi move, oil prices fell sharply on Monday as traders focused on the prospects of sputtering demand, given China’s effort to curb inflation and new warnings about U.S. deficit problems.
Ministers from the Organization of Petroleum Exporting Countries insisted Monday that the global market is well-supplied with crude oil, and blamed political and market factors for the steep runup in crude prices this year.
So yes, saudi arabia could make money by manipulating the oil market. I dont even understand how you have a hard time understanding that.
Saudi Prince Al-Waleed bin Talal said Sunday that he wants oil prices to drop so that the United States and Europe don't accelerate efforts to wean themselves off his country's supply.
Saudi Arabia deals well with low oil prices
Saudi economy set to shrink by 0.9 percent this year
The outlook for the region’s largest economy, Saudi Arabia, will “remain broadly positive” despite the ongoing economic downturn, according to an International Monetary Fund executive board report released last month. The IMF expects the Saudi Economy to contract by 0.9 percent this year, down from a 4.2 percent growth in 2008, because of lower oil prices.
Didn't we export more than we imported in 11? To me this says stop importing and supply our own oil.