Wall Street will open with oil at $29... the dice has been cast
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The North Dakota crude oil that's almost worth nothing.
The North Dakota crude oil that's almost worth nothing.
Dow to drop 80% in 2016.
wgb - The Saudis aren't quite as comfy as you might think. They've already increased the price of gasoline, by 50%, raised the income tax, and took on some debt, to balance their budget. They have been VERY busy in the region, funding various militia groups, etc., and their cost of production is not as low as you estimate. Not to mention,... their own population is growing restless,... a population that DEPENDS upon government handouts,... their economy has no other economic base, but oil,... no manufacturing, no financial, pharmaceutical, scientific, high-tech business AT ALL. Mix in the growing tensions with Iran, the Russian military, a predominantly Shia population (80%) in Bahrain (lead by a Saudi royal family) that is PISSED, Houhti rebels in Yemen (being stirred up by the Iranians and Russia),... the Saudis are in "a real pickle" (to quote a character from Oh Brother Where Art Thou). The Saudis can "go, for awhile", but not without doing some serious damage to their economy and creating a significant threat to the reign of Saud rule. At the least,... OPEC, as we know it, will collapse.
China will be rocking the markets next week. Be ready.
Meanwhile the price for a "Good ole Boy" to Beechnut your nuts drops to $3.50
Make sure he uses Wintergreen flavor, it feels the best! :)
so how much have LWD and DD salaries and day rates been cut by in NAR?
Industrial production crashes most in 8 years
Chipotle will be closing all its stores on February 8. Someone probably set them up.
It costs most countries $40-60 to produce a bbl of oil, but it only costs the Saudi's $10-15
With limited public spending the Saudi's can keep going for a very long time.
All of this results from the Saudis fear of being displaced as the dominant nation in the M.E. They've been busily trying to expand their dominance in the region, as early as 2010 (start of the Arab Spring), going head to head with Iran and Russia to build a competing natural gas pipeline to Europe (the Saudis and the U.S. were to partner up, on this), which is likely what precipitated ISIS (Saudi funded to threaten Assad and clear a path through Syria for the p/l), and when all that failed, they began using crude prices as a weapon. Obama's cozying up to Iran, exacerbated the Saudi's concerns,... with the specter of sanctions on Iran being lifted and Iranian crude coming onto the market, the Saudis were left with few choices,... they held fast to their production quotas. And, when the Russians landed their military in Syria, the Saudis' bluff was called. The only "weapon" they had left was crude prices, so they upped the ante, refusing to capitulate. NONE of these countries can function with crude much below $50/bbl, and as we have seen, tensions are mounting. Both sides appear resolute. Neither is willing to capitulate. But,... something MUST give. I'm betting that Iran and Russia will end up "the victors", simply because, given our Coward In Chief, the Saudis can not count on America "having their back" (as Gay Barry is so fond of saying),... the Russians are not likely to back down,... why SHOULD they? They laugh in Obama's ugly FACE and do as they please. If Putin see's a window of opportunity (another year of weak, cowardly U.S. "leadership") about to close, he may decide to "make it happen" this year, BEFORE a real U.S. Leader is elected. I see no other alternative, as even the Saudis can not survive at these price levels.
will drop to 10 USD, Russia announced not to cut level of production annd keep it up to high records.
Dow down 500 points. Stocks are in free fall.
Walmart to fire 16,000 as it closes 269 stores.
Free fall into low 20's.
Any predictions on where the price of oil will be at the end of the day? I think it will fall to $27.
Just like BHI/HAL waiting on DoJ and EU approval, Iran is waiting on IAEA nuclear compliance approval on Jan 22nd. If they get it and the subsequent approval to export oil + gas, the price will fall to $20 or less