We are doomed. Bad is about to get worse. A lot worse.
11 replies (most recent on top)
This, how do you say, aged well?
Muppet.
My previous post predicting Saudi Arabia giving Trump a gift of more oil production and lower prices was spot on. The price effect is still developing as future production increases are not yet fully in place and inventory build will take 6 months to become apparent to the markets. This alone would drive prices to sub $40/bbl.
Now, two divergent scenarios:
- Trump is not the supreme negotiator and Iran/proxies hit the Straits of Hormuz, Abqaiq processing facility, and Ras Laffan LNG. Prices skyrocket for the six months during the time that it takes to rebuild. Low likelihood.
- Trump negotiates a huge deal. Iran gives up nuclear program, IAEA back in, two state solution happens. Sanctions lifted on Iran and oil flows like crazy. Prices drop and stay there for a couple of years. Trump trumpets gasoline less than $2. Industry sees more layoffs and an EM merger with another major oil company. I see this as more likely.
A few more missiles launches here and there will sky rocket oil to the moon that's for sure.
A few missiles and increasing ME tensions put pay to that…
wars are good. goes with the greed.
Oh yes, leaning in. Not heard that one for a while...
Thank you Israel and Iran for helping the oil spike again. We are back in business peeps.
Used to be that the stock price was roughly equal to the price of a barrel of oil. That’s just how the math worked out. With production flat over my 30 year career, math should still be the same. $70 XOM anyone?
We could build up a DUC inventory for cheap if everyone is pulling back.
They lied about leaning in during the last downturn. They will pull back on everything they can. Just wait and see.
It looks like other companies are slowing their drilling so hopefully we will be good. It would be nice if we slowed our drilling as well but that makes to much sense so they probably won’t do it.