Posted on 09/23/2016 10:10:35 AM PDT by bananaman22
Crude prices are selling off, aided by Saudi comments that a decision will not be forthcoming from next week's OPEC meeting in Algiers. Add to this news that the Federal Reserve is looking to restrict bank involvement in physical commodities...and dollar strength as the cherry on top...and oil is heading lower into the weekend.
(Excerpt) Read more at oilprice.com ...
Bets were for increase , Saudi pulled a Fed Reserve hike in- hike out trick and probably made money.
Down 4.17% since this morning.
Not good for a whole lot of people when it gets this low and stays there. $55-60 is where I think both sides, producers and consumers, can at least get by now without hurting either one too bad.
Yay! Cheap heating oil right before winter!
Time to partly replenish the Diesel Tactical Reserve. I’d do more but Winter Diesel availability is still off in the future.
A dollar decline is a “crash?” I guess so in the land of Greater Hyperbole.
Saudi still thinks they can run American oil frackers out of business. They are insane about the frackers, or so in need of cash on hand that they don’t care.
The frackers financed their drilling with too much cheap debt instead of more expensive equity—so they created additional risk in their industry.
I cannot shed a tear for them.
The frackers are holding their own. Improved processes mean they can now make money as low as Saudi wants to drive the price. And, yes, I do think the Saudis intentionally flooded the market to kill competition. That has come straight out of the mouth or Pickens and other knowledge industry types.
It’s the Saudis who’ve bitten off more than they can chew.
I’m thinking that too. So far they are only prepared to make short term effort at it. Theoretically they could add hundreds of more wells on the peninsula but that would take long term capital and planning.
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