Posted on 11/24/2014 11:02:17 AM PST by blam
Claire Milhench
November 24, 2014
Oil prices could plunge to $60 a barrel if OPEC does not agree a significant output cut when it meets in Vienna this week, market players say.
Brent crude futures have fallen 34 percent since June to touch a four-year low of $76.76 a barrel on Nov. 14, and could tumble further if OPEC does not agree to cut at least 1 million barrels per day (bpd), commodity fund managers say.
"The market would question the credibility of OPEC and its influence on global oil markets if there was no cut," said Daniel Bathe, of Lupus alpha Commodity Invest Fund.
That could send Brent down to around $60, Bathe said.
"Herding behavior and a shift to net negative speculative positions should accelerate the price plunge," he added.
Fund managers are divided over whether OPEC will reach an agreement on cutting output. Bathe put the likelihood at no more than 50 percent.
(snip)
(Excerpt) Read more at businessinsider.com ...
I wouldn’t count Obama out just yet.
$60/bbl oil will really have Russia hurting - they’re already squealing with the price as it is. It’s starting to hurt them, and if goes lower, that will serve to increase to pain.
What’s to stop the Saudi princes from running their supplies into the ground, accumulating all the cash they can and then buying up sources that go bankrupt? They don’t seem to be the kind of guys that care about what happens to other OPEC members.
That’s true. He could, through executive order, the epa, or simply through the financial system (like Holder did to my previous employer),
shut them down with little to no recourse.
The lib solution is to cripple US oil production, hence the (failed) hysteria about fracking and the Gorebull Warming idiocy.
Too bad for them that far too much money has already been made — and those who made all that money are diversifying into technology. I see this all the time now in Dallas, TX: A TON of oil money moving into cutting edge tech. Not so much California for some reason. /SARC
The horses have left the barn...
Yes this little misadventure Putey has gotten himself into in the Urkraine is really racking up the rubles.
I'd be more concerned that she is in SC without you. Has anyone seen Governor Sanford lately?
In my previous post on this thread. I wrote “gas” not oil. Heavens, I can never properly edit my own writing. Sigh!
Well, I can’t speak highly of her tastes.
Afterall, she married me.
“Herding behavior and a shift to net negative speculative positions should accelerate the price plunge,”
I certainly hope so, as I’m short crude. Lower oil prices help the US economy, hurt the Russians, Saudis, Iranians, and Venezuelans. What’s not to like?!
Old Man Winter is going to help out the oil producers, much like last year.
Democrat legislators are to announce new gasoline taxes in 5...4...3...2...1..
Nor do I. There is big a difference between trying to discourage American producers from spending to drill complex experimental wells versus trying to discourage them from simply pumping oil after the wells are already online. The new oil production is here now and there isn't much OPEC can do about it.
Andrew Carnegie once told a biographer the opportunity to cheat was the whole point of joining a cartel in the first place.
But, like I said other places, the fedexec has other weapons at its disposal.
It don’t need no steenking legislation to shut them down via some EPA, IRS, or banking regulation.
(ahem) Is he out on the Appalachian Trail again?
Even though the monarchy maintains control with an iron fist, the kingdom could fall via revolt. And if the oil money were to stop, I think the peasants would riot. (Go fracking!)
As a group, traders tend to be trend followers. The shibboleth in those circles is "the trend is your friend". This means if they see an uptrend, they will exaggerate it by adding to it via purchases. Ditto with a downtrend, via some type of short instrument.
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