Posted on 01/10/2015 9:14:44 PM PST by zeestephen
Representatives of Saudi Arabia, the United Arab Emirates and Kuwait stressed a dozen times in the past six weeks that the group won’t curb output to halt the biggest drop in crude since 2008...The global oversupply is 2 million barrels a day, or 6.7 percent of OPEC output, Qatar estimates.
(Excerpt) Read more at msn.com ...
While it is true that you CAN buy futures contracts (or options on same), you had better be prepared to lose big suddenly. Casual dabbling in these markets can cost you big. I know. I’ve done it. I even made good money for a while. What happens is you become convinced of how smart you are with a little success. Usually as soon as you think you can time tops and bottoms in these markets, you blow up.
Cardinal rule: NEVER risk more than you can afford to lose. You won’t believe how quickly futures markets can turn on you until it happens, then it is too late. (I wonder whether someone is going to be desperate enough to start a war: Iran mining Gulf of Hormuz, etc. Historically, it doesn’t take all that much strife to cause crude prices to spike. Don’t expect to be able to cover your shorts if that happens. Your anticipated profits can be gone like so much wind....)
Prices were low before the democrats took over.
High price of gasoline is not normal.
Oil at $50 is far more normal than oil at +$100. Additionally, USD got stronger recently, so for oil exporters the drop is not as significant as nominal price is indicating.
You are staking out a position in midair. What is possible in SA and what really happens most of the time, differs. Compare it to Iran and then someone there might begin to count their blessings.
Are you really looking for rational thinking from that part of the world?
One of these days these guys will no longer be able to buy solid gold Rolls Royces or afford to poop in 24K gold toilets while the rest of the turd world is looking for some meat on a chicken’s foot in the dump.
Let them sell their national treasure for pennies on the dollar.
Meantime, the guys with oil jobs here need to find jobs someplace else, and hopefully they banked the big bucks while they were taking in that kind of pay. Move and adapt.
It will be good to get the entire global economy to where no one needs to buy oil from the middle east, and the dune runners can get back to herding goats and picking dates.
Look at Venezuela to see what happens to an economy that is no longer profitable from their ONLY export. One day these camel jockeys will have to try eating crude oil sammiches.
Good point. I wonder when and how Russia and Iran will respond?
Agreed - I probably should have rolled that into my #3. The Saudi policy is directed at competition worldwide, but I still think Iran’s economy is their #1 target.
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