lol. so wrong. that doesn’t move markets like this week...
And the most leveraged-accessible way to short it went to ZERO today
https://www.zerohedge.com/markets/mark-it-zero-triple-levered-short-oil-etn-crashes-complete-loss
Crude surged 2 days ago because Trump lied to the american public about securing some kind of agreement between Saudi Arabia and Russia about backing off on their oil price war. The benchmark fell again when it became apparent this was just another #TrumpLie. MBS and Putin are both leaders for life and it's unlikely they are going to take marching orders from a fat buffoon who will only be in power for another six months. Also Trump reportedly lost 1 Billion in the stock market crash probably leaving him with a negative net worth at the moment.
I don't think they're looking for a balancing, but rather to delay a total death spiral.
It'll be interesting to see how they divide up taking 10m barrels a day off the market though.
https://www.cnbc.com/2020/04/04/oil...ns-flare-between-saudi-arabia-and-russia.html
Ain't gonna be easy
It'll be interesting to see how they divide up taking 10m barrels a day off the market though.
https://www.cnbc.com/2020/04/04/oil...ns-flare-between-saudi-arabia-and-russia.html
Ain't gonna be easy
They would only cancel that meeting if there was NO chance of getting
any significant concessions from ALL or almost all of the major suppliers.
I guess more countries will have to endure much more pain until OPEC
and non OPEC countries sacrifice enough production to balance the demand/supply
ratio. Even trump who in the past has applauded lower oil prices, realizes
that these prices jeopardize a lot of the domestic drillers viability and
greatly hurt the high yield junk bond market into which many of them
are over levered. To have a production war at a time when a black swan
event has damaged demand is quite unfortunate for the oil producing countries.
It’s hard to see why they don’t act in everyone’s best interests and cut
supply, but I guess they will have to endure more pain to get to that point.
any significant concessions from ALL or almost all of the major suppliers.
I guess more countries will have to endure much more pain until OPEC
and non OPEC countries sacrifice enough production to balance the demand/supply
ratio. Even trump who in the past has applauded lower oil prices, realizes
that these prices jeopardize a lot of the domestic drillers viability and
greatly hurt the high yield junk bond market into which many of them
are over levered. To have a production war at a time when a black swan
event has damaged demand is quite unfortunate for the oil producing countries.
It’s hard to see why they don’t act in everyone’s best interests and cut
supply, but I guess they will have to endure more pain to get to that point.
they will stop pumping the oil if there is nowhere to put it, it has to be that way. once you fill up the tanker ships and land storage, there is nowhere else to put it
if gas was on sale for 29 cents a gallon, your car might hold 18 gallons, you can't realistically buy an extra 1,000 gallons, or about 3 tons worth, unless you happen to have a spare tanker truck laying around
production must cease at that point, therefore $20 ish oil is what I call the bottom
you can't put 30 lbs of stuff in a 5 lb bag....
