been snooping around oil stocks..if anyone knows one that held its gain let me know..because the ones I am watching havent. And Cop has now gone negative.
SPX briefly went negative but bounced back some.
Mnuchin is kind of an idiot. Because Russia will love it if our shale producers go bankrupt.
Ten dollar a barrel oil and 50 cent a gallon gas sound good to me.
Been screwed by the energy companies long enough; this Californian ain’t never going to forgive any oil or gas company that gouged the hell out of us when they had the chance.
Now that I think about it, 5 bucks a barrel sounds about right.
“Russian energy minister Alexander Novak said Moscow was ready to discuss new measures with OPEC, effectively offering an olive branch to Riyadh.”
In other words, Russia blinked first in its brief price war with the Saudis. It costs Russia about twice as much as it does Saudi Arabia to produce a barrel of oil. Waging a price war with the low-cost producer is a fool’s game.
Gotta love that “free market” for oil when nations have to agree on levels of supply.
I think the Crown Princes got more than they bargained for in Putin.
Seems to me that if the price gets too low, we should be talking about filling up the Strategic Petroleum Reserve.
By my estimates using the most recent data, we could purchase all of Saudi Arabia’s 300,000 bpd excess capacity for the next 10 weeks thus providing some stability to the oil markets. We could then sell it later once the kids are through bickering.
We would be buying low and selling high. Smart move, right?
"ABS"
ABS, while "plastic", is not known for flexibility. It tends to crack under stress, but resiliency varies with the formulation, reinforcing fibers in the mix, etc.
We shall see.
Saudi Prince Al-Waleed tried bankrupting US shale oil producers years ago but failed to stop the surging US domestic oil production. He bankrupted a few but he did not understand that most US shale oil producers simply turn off their pumps and go back to their mainstay businesses of farming and ranching.
Today, hydraulic fracturing tech is much better and more efficient although it is still not competitive with Saudi oil extraction costs. But each year the tech improves thereby lowering the cost for extraction.
The disparity in extraction costs is easily addressed with import TARIFFS.
If Saudi Arabia wants to sell cheap oil, they won’t be able to sell competitively under US imposed tariffs. This collapses their whole scheme. Better to make a deal with President Trump.
President Trump is the consummate deal-maker.
There is one other advantage to US shale oil production that dwarfs all other foreign oil producers, each barrel of shale oil extracted brings up a massive amount of natural gas (NG) that is shipped as LNG to foreign ports. Asia and Europe depend more in most cases on NG than oil.
The US holds the winning hand here and the American President knows how to play the game.
Russia is willing to hurt its own economy for geopolitical reasons.