Posted on 11/27/2014 10:13:07 AM PST by blam
Myles Udland
November 27, 2014
Crude oil just broke $70 for the first time since June 2010.
West Texas Intermediate crude futures are below $70 after Thursday's OPEC meeting resulted in the oil cartel announcing that it will not cut production.
On Thursday, WTI futures were down as low as $68.90, a more than 6% decline in the last 24 hours following the news.
(snip)
(Excerpt) Read more at businessinsider.com ...
Leasing mineral rights at market rates "forever" and getting nothing out of it -- now there's a sound financial plan.
LOL.
Depends upon how many months is “months”. On the way up, I thot COP was getting pricey at 74, 78, 82, & 87. Well, I was wrong three times and right once. COP I consider to be one of the finest stocks out there, very skilled operators. One of my “5 best stocks”, no question. Of course they cannot change, by themselves, market-wide revulsion over oil prices.
I happen never to have been a big fan of HAL, but that’s just a matter of taste buds. It tends to be a very slow mover, for my purposes.
The truth is that oil has been such a wonderful place to invest in, really, since the market lows of ‘09. It’s been a crappy place for about 4 months. In some ways I wonder how far the market in general will go if the whole energy sector deflates. But oil getting cheaper is very bullish for consumer spending and the dollar. So one sector’s pain is another one’s party. And no way, no how, can you decide to be bearish this time of year. It is phenomenally bullish between T-giving & Xmas. Of course, now we get into the possibility of oil being chucked out all the way to the end of year as in “discard losers”. Fortunately, that pain only has a month to run, but it could get ugly.
These things have a way of going farther, often a lot farther than one might project.
Thank you for that.
They are robbing you...They ought to be in jail...
Nicolas Maduro just had a Big Mac Attack in his diaper.
Right, which is why one would think the oil price falling would occur BEFORE economic recovery not the other way around? If our betters are to be believed we are well into an economic rebound - again which I frankly DO NOT believe.
120,000,000 dead people prove you’re wrong.
Only a liberal would want more government.
/johnny
That has me a bit puzzled.. what is in it for China?
Given the rising power of their middle class the genie for the purposes on an ideological table no longer makes sense.
They are seeing that middle class more on a par with the US. That middle class has far more communication options that make going back not an option.
Russia is deluding itself if they think they can lead and or control any movement on the scale of the US or the scale of the China with a middle class growing closer to us than Russia still has very little of a consumer class than it did when they got out of Afghanistan (okay, maybe a bit more but barely).
China and Russia stand very little unless they believe they can foment whipping public opinion against us. They both benefit only making a move against Saudi Arabia than us in a military or economic fashion.
We should give strong support to keep North America moving ahead on production. The Saudi’s will not stand to lose any money by getting in a pricing game going against us. Russia is happy if Europe gets a strong cold spell and increases call for more natural gas.
The ruling class of Russia can not get in any sort of pricing battle with us. Their cash flow benefits the ruling class of Russia only and not the Russian middle class.
Again, on just monetary reasons both Russia and China only make out when our middle class benefits and can not/will not take any not moving ahead.
I saw two videos over the last few days that only support this. One involved the Russian troops in Ukraine. They seemed like they sensed the Russian actions had very little support on the troop level.
The second was the Chinese military helping with a citizens group releasing a Panda back into the wild. There were band playing and every thing. This Panda had been orphaned or something and there were Chinese wildlife people watching the whole release around video monitors... it looked like they where landing on the moon.
If the Chinese coddle the citizenry over an orphaned Panda release... they are more like us than many would think.
The point of both videos show that the governments are playing to a citizenry more like us than they would maybe like, but neither has the backing to take us on in any serious fashion and so won't.
We should just play it out and oil will eventually- inevitably settle out and it will be too late for the Saudis to so anything as there is nothing they can really do.
We will only befit by just moving forward. If anything this is a herald to what a new reality on oil prices will be. Drill baby, drill.
indeed
I was just saying that today- said that the last time oil was 69$ per barrel gasoline prices were down around 2.50 a gallon here- and asked why they aren’t that low again here? You’re right, something has changed-
oh that would be nice- I could actually afford to go for rides again at that price- but if pricers get down to 1.99 there in texas, then here it will be around 2.50, but still that would be better than the current 3.29
If only you could run your car on crude oil....oh wait...you can.
Bttt!
Yep while we watched cowboys get whupped and ate turkey today OPEC met and forced the drop knowing that quiet a few Texas Permian basin producers can’t be profitable when oil drops below 75$ a barrel or so I read somewhere yesterday.... I think that was the meat of the report....
There’s no doubt that hussein and George Soros are behind this. They have a prime goal of destroying the Texas economy because they want to “prove” that free enterprise doesn’t work. The Kenyan-born muzzie marxist and Soros constitute an duo of unspeakable evil. And it’s a near certainty that Warren Buffett is also in on the act.
What’s our counter move ....?
Do the producers in the conus oil fields build new refineries and stop exports and turn fuel down to a dollar a gallon here ?
Stop all exports except to proven allied nations ?
Cap the conus oil wells till prices go back up ?
Cap the OPEC leadership with a few JDAM’s ?
I don’t know so I ask......stay safe !
Global oil production is now 1.5 million barrels per day higher than global oil demand...so the supply glut worsens daily by an enormous amount.
Pretty soon the glut will be larger than global oil storage capacity.
Venezuela, Iran, Nigeria, and Russia will be hit hardest. U.S. frackers next, then Iraq, Kuwait, UAE, Canada, and lastly Saudi Arabia.
This will hammer Tesla, the Volt, Nissan’s Leaf, and BMW’s new electric cars. Gonna be some great auction values on the used market coming up in a year or so.
Japan and China benefit, as they import the most oil now, so lower oil prices reduce their cost to compete.
Waaaaaaaaaaaaaaay back in the day, Jimmy Peanuthead Carter shelved an environmental plan to prop up U.S. oil prices by imposing an oil-import-tax. The idea of protecting the U.S. domestic oil industry so galled him that he didn’t want higher gasoline prices that would have reduced air pollution (pre-smog days for most vehicles on the road back then).
Lots of marginal U.S. frackers are about to be tossed out onto the cold, non-global-warming streets as sub $60 oil will torpedo their business models en masse.
Well, for one, don't let Jason Garrett devise the strategy! :)
Seriously, I'm not sure I'm any more competent than he when it comes to dealing with current crisis which has been orchestrated by OPEC, hussein and Soros. I'll take a stab though and the oil experts who frequent FR can point out the flaws in my approach -- and I'm sure there are many. During this period, I would build up the strategic reserves and prepare for a war footing. Energy drives the military and the surplus should be allocated to defend our Republic from enemies both foreign and domestic.
That said, the pain I'm soon to feel in my portfolio since a potion of it is in our local XOM does have me worried. And I feel for those in the oil industry suffering due to these machinations orchestrated by those who seek to impose marxism on America. Of course, underlying this is the priority of removing hussein and his henchmen from power since they're the ones behind this. Jim Robinson has spoken of hussein's final months in office as being a time of crisis and what's happening now with this anti-energy campaign waged by the corrupt administration is the clear evidence of that.
Well, that did go on a bit, didn't it. And, in a more pithy form, your idea of capping the OPEC leadership with some implements of destruction (JDAM or otherwise) does have a certain appeal.
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