OPEC Risks Seeing $60 Oil If It Doesn't Make A Big Move This Week

BI Reuters ^ | 11-24-2014 | Claire Milhench

[Obadiah]

I wouldn’t count Obama out just yet.

[AnAmericanAbroad]

$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.

[grania]

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.

[MrB]

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.

[piytar]

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...

[Georgia Girl 2]

Yes this little misadventure Putey has gotten himself into in the Urkraine is really racking up the rubles.

[Defiant]

Are we sure this is not orchestrated to kill fracking and American energy independence in its infancy? Is our drilling and increasing supply the cause of the price drop, or are others manipulating the price to keep Americans, and those who Obama can't control, out of the game?

[Defiant]

My wife’s mean like that...

I'd be more concerned that she is in SC without you. Has anyone seen Governor Sanford lately?

[AEMILIUS PAULUS]

In my previous post on this thread. I wrote “gas” not oil. Heavens, I can never properly edit my own writing. Sigh!

[moovova]

Well, I can’t speak highly of her tastes.

Afterall, she married me.

[Wheelman81]

“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?!

[Night Hides Not]

Old Man Winter is going to help out the oil producers, much like last year.

[Organic Panic]

Democrat legislators are to announce new gasoline taxes in 5...4...3...2...1..

[SeeSharp]

I don’t think they’ll be able to pull it off this time.

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.

[SeeSharp]

the temptation to "cheat" by individual cartel members selling a good at a lower price is VERY high

Andrew Carnegie once told a biographer the opportunity to cheat was the whole point of joining a cartel in the first place.

[MrB]

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.

[blam]

"Has anyone seen Governor Sanford lately? "

(ahem) Is he out on the Appalachian Trail again?

[LouAvul]

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!)

[Zhang Fei]

I remember reading, back over a year or so, that the large investment banks had begun taking futures positions in oil because of the high price and seemingly effortless price support in world markets. The investment banks intervention in the market helped to sustain the higher than normal price levels. I’m wondering if the falling prices indicate they have stopped being competitors in a falling commodities market, leaving the remaining bidders among those who actually convert the product.

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.