GettyPosted on 04/18/2016 5:12:45 PM PDT by Ernest_at_the_Beach
No incentive for Saudis to let up
Getty
By WilliamWatts
Why would the Saudis give up now?
That’s the question crude oil bulls should have been asking themselves ahead of the Sunday meeting of major oil producers that failed to produce an agreement to put a lid on production.
Prospects for a deal fell apart after Iran refused to sign up, prompting Saudi Arabia, the world’s swing producer, to effectively walk away.
Those that believed Riyadh had appetite to put a lid on output were banking on the idea that the kingdom is feeling the pain of the crash in oil prices
that it helped to engineer. They see the Saudis imposing austerity, looking at taking outside credit lines and weighing a sale of a chunk of Saudi Aramco and see weakness.
Skeptics look at the same developments and see pragmatism. They argue that the Saudis are finally acknowledging a host of economic and geopolitical realities.
On the economic front, the Saudis realize that the world is growing less dependent on oil by the decade. Meanwhile, the advent of U.S. shale wrecked the existing world order .....
(Excerpt) Read more at marketwatch.com ...
Bout half of it...gets the major point across!
Today Oil (CL) had one of the biggest intraday reversals in decades.
It is beyond my realm of understanding to figure out why
And why would one party (KSA) agree to cut their production when they knew everyone else was going to cheat?
Apparently no one remembers oil is cyclical. Saudi Arabia isn’t causing low oil prices, it’s steering into the skid.
There is another way to show also:
It is because the fundamentals are there and turning more positive to firming or higher prices.
Wait for the storage and production numbers that leak out tomorrow and are published on Wednesday.
That is GREAT! I saved it.
DB has just admitted to rigging the gold and silver market and they are going to turn evidence over about other big banks who rigged the market.
I don’t believe the biggest intraday reversal of oil in several decades is about strong fundamentals...especially with IRAN willing to pump everything they can into flooding the market for $$$
Would be intersted in Links...Thanks.
Thanks Ernest.
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