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Did The Saudis Just Get A Tap On The Shoulder?
The US-Saudi "secret" plan that was supposed to crush Putin quickly turned sour when as we reported several days ago, one after another America's own shale plays, which recently entered a very sharp bear market, started appearing on various death watches (case in point today's MHR Second Lien refi which repriced from L+500 to L+750 in minutes).
As a result, one wonders: did Obama realize that Russian "costs" which as everyone knows by now include a Eurpoean triple-dip recession, could also very soon include an insolvent US shale industry, and thus may be just a little too much, and, one further wonders, if he is the one who just tapped Saudi Arabia on the shoulder?
WTI - granted, record oversold as is - explodes higher (on no news whatsoever)
As Brent-WTI compresses...
and Shale stocks are bouncing...
Charts: Bloomberg
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Its a Trap!
Good god there is nothing about your comment that is not perfect.
I believe it is called an oversold technical bounce. Wait for it to rise above $90 before the slaughter begins again.
OK, so let me get this straight. Obama is riding to the rescue of shale oil drilling companies?
No. Just no.
...Meanwhile Turkey is Pro Isis and carpet bombing the Kurds, who are the USSA/Saudi/Israel Allies....
All is FUBAR friends
No. No.
There is some bald guy in a plush bunker somewhere stroking the fuzzy white cat on his lap chuckling to himself how this all going exactly as planned.
Barry, tap the Saudis on the shoulder? You must be kidding considering he pisses himself and curtsies when in their presence...
Another justification for QE, they will bail out the shale oil industry with newly printed money, but of course a good chunk of that goes into self chosen pockets.
Inequality triggered EBOLA
More QE, more instability more inequality ==> more EBOLA like epidemics.
I have the feeling that this is not the direction the elites want to go. Epidemics like EBOLA can destroy their power base. They don't want the risk.
South America, with Venezuela and Argentina following behind are HUGE cauldrons that could explode at any time.
Quite a stretch associating economic Armageddon with a medical pandemic, but hey, if it gets you through to day, so be it...
It's Russian Roulette... But the catch is ALL the chambers are loaded.... and Putin just handed Barry the revolver and told Barry that he gets to go first...
ZUBAR.
Zioned Up Beyond All Recognition.
An American, not US subject.
"One doesn't move to Zion, it comes to you."
Stop being so 'anti-ceramic', wearing little ceramic plates on top of one's head is what happens when there are not enough beaver skin hats to go around.
indeed, FUBARer and FUBARer
It doesn't matter. The basic thing to understand is that "they create booms during periods of inflation, and then busts by deflating the money supply". This is not the first time the owners of the Central Banks have done this. When finished here, they are moving to China. America will remain intact (see Britian), but as a controlled society, bled dry of its former wealth and human rights.
$1 in 1913 = 4 cents today. Game over.
~"$1 in 1913 = 4 cents today. Game over."~
Nonsense! Really Sam, you've got to become more of an optimist. We can easily reach $1 in 1913 = 2 cents by 2015. The game is far from over! /cruel irony
Listen.
Get that man a beer. You forgot to mention that the Mussies are going to move in and take over.
But China is rockin-and rollin. Communist or not, you can make a fortune there now.
What worries me is OIL holds the key to true inflation and if SOMEBODY can just manipulate the price of OIL just like that for whatever reason, then theres no stopping a real scenario of really having stagflation in the future because they can just drive up the price of oil just like that even as the economy continues to languish.
As was stated the original collapse in oil appeared to be done in the same manner drive by shootings in precious metals are, an inexplicable paper dump in the blink of an eye. Counter intuitive in terms or anything approaching a real market.
It's all a mirage.
Don't forget the Lockheed Martin nuclear fusion breakthrough announced this week too. Free and safe energy for all - within 10 years. It's a mirage alright.
In response to Andrea Rossi's cold fusion power, independently verified a few days ago. Then suddenly all kinds of fusion "breakthroughs" start popping up. Hmm.
If this Ackbar fellow plays his cards right, he could be the next ZH mascot alongside the deer.
dupe
I'd get drunk and party like it's 1999, if "The Saudis just got a Double Tap"
Allah [Gen.] Ackbar!
I always think everything is a trap.
- Prince Humperdink
Only the Paranoid Survive
- Andy Grove
Sacrificial lambs using last batch or customer's money to remain alive.
Another MFG is in the making
ok, ekm....so which financial institution should I take my money out of??? Or should I watch Mad Money tonight and see what Cramer says first.
you can't.
If you have a lot, you just can't
Can't place electronic money inside a mattress
Chief Brody: You're gonna need a bigger mattress.
I've got my great grandpa's stuffed mattress. If I shake out all the paper money into a wheel barrow, maybe I can buy a new stuffed mattress with it.
If I take $9,900 out per week for a year, that is a half mil. I guess that is not much, but maybe we have more time? Do you think the feds would be after anyone draining $10k/week out?
A lot of banks would report you for draining over 5K a week. The 10K number is only a number that means they have to report it. They still report smaller amounts. I learned this through experience.
What happened?
If you can't trust Cramer, then who can you trust????
the trap, as I said before, was thinking the saudis are hatching a plot to crush oil.
"We can't handle that kind of firepower!" Flap-flap-flap.
Proof once again that Obummer and his New World Order masters can do nothing right. Oil is heading down to $60 a barrel, a price point bad for low production cost Saudi and Russian oil but absolutely disastrous for expensive to extract and refine shale oil. Shale oil is a limited run resource that will leave behind contaminated lands, wrecked aquifers and tapped out investors. Sooner now than later thanks the incompetents that surround "B" average Occidental College student Obummer, who still somehow made it to Harvard Law school.
"It' a Trap!"
A Sand Trap or a Tar Sands Trap?
Nah - it's Akbar & Jeff's Cryonics Hut...
It is sacrificial lambs trying to find a way out to avoid margin calls below $80 wti
PPT in action!
I think is the most likely explanation. Probably someone wanted the price to go down to pressure Russia without considering unintended consequences, like blowing up banks, and got an update to their orders that added "without causing a banking crisis" to the goal.
heh (and yes)
Another "corzine" out there using customer's money to survive
There is anoter MF global in the making, in my view
I show my nose rarely here, BUT, it`s my HO that ekm nails the things going on re the saudis.
Peace.
You should bring your nose around here more often.
I'm with you on that. Just don't get him started on Russia.
:-)
I don't understand what the Professional Poker Tour has to do with this at all.
Exactly, go ahead "crush" oil prices. I still have one more very large diesel tank I can fill.
Fucking bring it dumbasses!!!!
The Zil has 2 x 45 gallon tanks - I'm right there with you.
Its like someone pressed a button
It depends. Are the "Saudis" referred to in the headline prepubescent boys? And are the ones doing the shoulder tapping members of the Saudi royal family?
Along with the two dead American government contractors working in Riyadh!
" could also very soon include an insolvent US shale industry"
Obama is in over his head, it really is a game of Wack 'a Mole. He thought to use Saudi Arabian reserves and pricing power to beat Russia to it's knees. Yet the "Blow Back", like the dead contractors, is already rearing it's ugly head. The Shale play is highly leveraged and has a low energy produced for dollar invested return. It rod high on the back of high oil prices. Obama's attack on Russia, by the laws of the market place, had to Blow Back onto Shale and Tar Sands plays. Markets will be manipulated and liquidity flooded, but in the end, a Market always has the last word.
As a side note. Obama is a fucking insane racist. He has personally taken it as his job to destroy over 150 million people who live inside the Russian Federation. When these folks are simply a European and Asian trading partner of long standing, and only react when attacked. So what is Obama on about with his declaration of war, via the proxy fascist Kiev Army. Well, I believe Obama wants Russia wiped of the earth for two reasons. Number 1, US corporations want all those resources and don't want to pay for them. Number 2, Obama hates the White man, and Russia is a white nation by and large. Obama shits himself looking at all the Whites over there, living and working and not allowing a total open borders to Africa. And Obama believes Africa is the center of the universe. Africans have a right to move into all white nations. Russia won't play ball, Obama wants all 150+ million people there dead! Racist cunt. Also, Israel believe Russian resources really belong to them, and use America to try and take them over. See Jewish Oligarchs for a little idea of how that worked in the 90's.
My take. Fuck you Obama. Not every white man is going to roll over and play dead before your polical correctness.
# sarc, to some small degree.
I understand the Sarc, Mr. Burton; but you seem to forget that POTUS is Half White, with mostly White (and Hawaiian) Friends growing Up.
Though he married a Black Woman (who appears to have more Testostrone in her (all Women do have a small amt) than he does), I'm not sure he's up on any form of Black Supremacy.
I'm half Black myself; and grew up in Japan. My Late Father was a Sailor who grew up on a Farm; and of my Relatives, several of my Uncles appeared to have lived normal productive lives, though I expected more College Graduates (my Brother and I are the only Sibling Set I know of who graduated from notable Universities; and that includes all the Black/Asian and White/Asian mixed Kids we grew up with in the Navy).
I've seen all kinds of crazy Negroes - including the "supremacists" and parasite Cult Monkeys - running about in the Military, Federal Service, and in the Local Communites - to the extent that I'm throughly embarrassed by the sheer amount of Morons represented while the serious struggle with their Careers and Families. That being said, since like minded congregate, I've seen the Morons across the Racial Spectrum mill about a'plenty here in Southern California.
Considering TEAM_USA is Looting MENA as well, I've concluded that he not only is a Racist, he's more or less an American (Masonic?) Supremacist (considering Masons have stated their intent on spreading their form of Democracy to the World in their History Channel Documentary - site Tien An Men and HK(backed by Money Laundering Masonic HSBC).
For the record, I don't hate Masons; but I've observed that most of the Crazy Cult and miscreant factions bringing grief to my life are usually Thieving/Sabotaging/Race Hating Masons and Catholics (others are involved too, to be fair) intruding upon the "Upright and Productive" while covering for one another.
JB
Concur with most everything you had to say about the CIA trained chimp in the Oval Office with one exception.
Remember he's a protege of ZBig and he hates anything the banking and oil establishment tells him to hate. He flys absolutely no colors -it's all about coveting what the other guy has that you don't have(.)
He's the ultimate contradiction on everything he rode in on in '08 but by far he is the worst betrayer of the black man as he loots, maims and now kills in Africa to keep collective China out of making lucrative business in that part of the World which the United States is no longer capable of mastering with a sterile economy and currency that is worthless!
Captain. To be honest, I am surprised it took so long for Americans to be targeted inside Saudi. Saudi is the central funder of world Islamic extremism. The USA gets all it's tame terrorists from Saudi sources. Like ISIS, when the CIA created ISIS they relied on Saudi funding and personel to form the core of the group, all intended to bring down Assad.
I was out that way as late a 2012. There is a lot of anger against the citizens of the Anglosphere in general. It's simmering under the surface.
A week out there amongst the local population will pretty much reveal it.
The funny thing is that the MSM was just ramping up on stories as to how cheap oil was a global stimulus. Guess they are throwing away those notes and cancelling those guests. You would have thought the White House would have given them advanced warning but then again the administration is shooting from the hip more than the Fed is.
PREDICTION
Another or few "corzines" are using customer funds to survive oil trading margin calls right now
Few "MFGlobals" are in the making right now
Turn those "stretched" companies into banks and puff, all their problems go away....
Politicians get some scratch as well.
Win-Win except for the US citizen
If anybody believes that Saudi Arabia are our friends they are crazy. It's more likely the house of Saud is defending market share by targeting the U.S shale oil than they are targeting Russia. An enrgy independent nation of consumers is not good for them.
A headline not helpful to either those who profit from oil scarcity, advocates of peak oil, or US shale producers-
INTERNATIONAL. Platts - Oil production from the Organization of the Petroleum Exporting Countries (OPEC) totaled 30.6 million barrels per day (b/d) in September, up 400,000 b/d from August and the highest level since December 2013 when the oil producer group pumped an average 30.65 million b/d, according to the latest Platts survey of OPEC and oil industry officials and analysts.
http://www.bi-me.com/main.php?c=3&cg=4&t=1&id=66903
TFTL: I always thought oil flow would increase exponentially, forever. It affirms my faith in God.
Gonna go shopping this afternoon for a Hummer! Hell yeah.
That was even more sloppy than my typos. I should have been more precise with something like- "those who argue we have already reached and passed peak hydrocarbon production and the sky is falling tonight..." (Too verbose, fuck it. My multitasking skills aren't what they used to be. Sorry. Perhaps the retardation of the ebola hoaxers is as contagious as ebola itself, in which case I need to get out less, and the Tylers need to bring back the captcha to slow down the propagation of toxic comments.)
Fair enough - and I didn't down vote you.
I agree with this.
"Liquidity must be restored to the system" and shale oil is a threat to that.
Ebola is a "problem" because while its good for demand (more cups and napkins) its taking trillions of dollars out of the system.
QE could have the opposite effect of creating inflation "as has been the goal since day one." (The Fed stated inflation as their goal.). In other words if we have an outbreak that takes out a quarter million in New York City in the next six weeks its hard to see how you price gouge that one.
We'll all be forced to wait for the Government response.
Demand will shut down as we shelter in place.
America still imports close to 60% of the oil it consumes (almost 18 million barrels per day, even with the economic slowdown and "lack of demand")
still a long ways to go to "oil independence"...
To be clear. America will never be energy independent, but as long as they have oil Saudi Arabi will never give up market share.
"Physic", One would never know that by the USA Media! According to them we are the world's greatest exporter. The media is a joke. No facts, no investigation and no credibility!
yes, sir
There is MUCH to think about in what you say "Dr." A good point to consider. Both Saudi and Putin want shale to die.
They don't have to be friends. They help the neocons out - lower oil price to hurt Russia - and the neocons help them out - bomb their enemies.
Biophysical Economists have been shouting since the shale boom began about how low prices would kill shale production. If Obama is competent enough to sway the price of oil he is competent enough to know it would hurt shale production here at home.
If he had that power then all sorts of other things would be going his way too unless maybe he is an idiot savant and his only talent is the ability to swing crude oil prices in his political favor. That would match his track record...
Arch Coal up 66% in last four days
Because before embarking on this "secret plan" involving the same petro-industrial complex that puts politicians in office, they never would have considered the impact of $80 Brent on the US shale industry.
This entire article makes zero sense. That runup wasn't Saudis; it was momentum algorithms not wanting to get caught short in an oversold market.
And now the Saudi offer of oil at $80 a bbl will be even more attractive and will deliver to KSA an increased market share.
Tomorrow the algos will react to this and the price will plunge once more. Even the Titanic bobbed up or down a few times before it plunged.
The state dept. neocons are psycho.
whether or not you love, or hate Putin, or just think he's more or less the leader Russia needs post Yelstin and under attack from Grand Chessboard types and neocons..
you have to consider the possibility that those running the US government don't actually know what they're doing.
Other than "do what they're told," they don't fucking care, as they know they have zero power outside of the current con they operate under.
All of which is part of Zbignew's "Grand Chessboard." It's all about power and control of the populace under the guise of allegedly responsible governance.
No, they are competent alright. The governemnt is controlled to a very large degree by the people who run it. The problem is that the dual citizens march to a different drum beat than the one you hear. Obola , being one man and has a small brain and ony 24 hours a day can be manipulated easily by those around him even if he does not spend most of his time playing golf. It is now obvious to anyone he is ducking the increaasingly complex job responsibility and he can no longer cope.
Those who work under, I mean above him are not incompetent, they are EVIL.
GAP clothing doing a $500 Million stock buyback.
The recovery is here!
Mo money!
Mo oil!
*!
Its also possible this secret deal stuff is bullshit and the Saudis are purposely trying to destroy US shale before they announce they are now accepting rubel and yuan as payment...
I tend to think the oil price rise since 1998~ has been driven entirely by the euro scarcity engine and its inherent capital export dynamics as purchasing power is robbed from euro roboten and the subsequent surplus is dumped on these poor misfortunates via various high end value added corporate goods - be it cars full with absurd value added crap or roboten burning precious kerosene so as to escape VAT on basic products
(Chinas hockey stick coal consumption graphs also point to this euro event horizon of the late 1990s)
Irish alcohol consumption peaked in 2001 (the year before euro physical introduction)
Enough said really.
Thats when the force feeding of oil products down the throats of Euro roboten became official fascist policy.
Most Dorks are happier burning very little energy talking bollox in the pub rather then chasing absurdly scarce money tokens for no return.
Translation :
The oil price will only implode when the euro implodes.
Declines in the oil price may be a sign the euro is near the end of its lifetime (Thank God)
However we may also return to 1980s like supply levels.
This will be great news for most - as people will be able to slow down and enjoy life a bit more
20% of Ireland's population is now born outside Ireland [not 'Irish'] which may have something to do with it.
In fact, the plan to "internationalize" Ireland is proceeding apace.
The Misplaced Minister: Ireland and Israel's Alan ShatterThat indeed may be true but alas was not my point (read above)
(I sort of know about banking plantation tactics and stuff ..a bit like)
I meant the alcohol consumption.
Somalis don't like Guinness.
Yeah sure thats part of it.
But food and clothes consumption is also down from Y2008.
We have seen a massive reduction of wealth per capita but cars are forced feed on us at 0% interest so as to keep the oil / profits in London up.
Here's some more on that treacherous nation-wrecking scumbag Ala Shatter. http://irishsavant.blogspot.ie/2012/03/shatter-watch-treacherous-nation_...
For the traitor appears not a traitor; he speaks in accents familiar to his victims, and he wears their face and their arguments, he appeals to the baseness that lies deep in the hearts of all men. He rots the soul of a nation, he works secretly and unknown in the night to undermine the pillars of the city, he infects the body politic so that it can no longer resist. A murderer is less to fear. The traitor is the plague.” - Marcus Tullius Cicero January 3, 106 BC – December 7, 43 BC
You are anti-semitic.
No if you're looking for an event in Europe's oil market around that time you will find that UK production from the North Sea peaked and began to decline.
Scarcity Engine? Try physics...
http://en.wikipedia.org/wiki/Second_law_of_thermodynamics
But western economies and socities don't really need much oil in the first place.
Whats happening in Europe is that the dumping of the surplus (so as to maintain concentration of capital claims within financial houses) is destroying core life support.
Irish oil consumption was half the present (much reduced from peak of 2008) in 1990 just as the final phase of euro scarcity operations was about to begin.
And it was a much nicer country to live in.
Yeah that is why the US alone uses about 25% of the world's oil... Because they don't really need much...
The Triple Krugman
I wonder if Obola will make enough people want to avoid subways/buses to affect demand.
Suspected Case of Ebola in Connecticut
Gee, I hope this doesn't affect holiday travel and shopping... fucking consumption-based ecoonomy and all...could crash the economy, or at least require Super double secret QE/bailouts...
bail-ins??
Bail-ins now seem to be the preferred method of theft.
Options Expirations and Roll Over this week...
It's not just Saudi Arabia but Kuwait and UAE are cutting prices to Asia and others are secretly playing "Will Match" that price.
They learned that by cutting output they lost market share to others in OPEC who would lie about their cuts. So the Saudis aren't
going to lose share this time. It will bounce down from here to some bottom.
For the leftists, bankrupting the shale oil industry is just the icing on the cake.
Austerity in Europe is mainly about saving the corporate car sector which has a symbiotic relationship with bank scarcity operations. (centered in London)
Interesting, my 90's car does 43 mpg, and my 2012 car does around 70mpg. That difference outweighs the increase in numbers, albeit I accept not every new car is that economical.
The best way to reduce oil consumption is to walk the earth..............
https://www.youtube.com/watch?v=0_J4TRYxpmU
True. Horses and cycling also v good.
The FED is happy, they don't have to raise interest rates. Plus that pesky Recession/Depression thing gets blamed on Oil..
i wrote a college paper on OPEC in 1974. Same shit, different day. Oil was put on earth to power the internal combustion engine. When someone,,, not a government,,, not an organization,,, some one,,,, decides that his/her/its lifes work is to come up with a viable energy alternative that does not require batteries/electricity to power an engine that generates as much or more power and sustainable by market conditions will we have alternative power for moving the world. Burning coal to generate electricity is maybe why coal is in the earth.
We are well beyond the point where we can navel gaze and ponder global warming/dirty water/ skies and all that shit. I know the clean water act now allows me to catch walleye and smallmouth bass in a river that in 1974 housed only carp and trash fish. See,,, wealthy countries are able to plan ahead, clean up, decide what is important.
Cleaning out the shorts is today's play in the oil market. As long as the sun shines we as a country will buy oil from the Middle East. Want to run an engine on water? Get busy. Cold fusion? Get busy. On Elecricity? Going to get the lead for the battery out of the ground with your bare hands? Didn't think so.
Sorry,, had to rant a little,,, OPEC will be around when I leave this earth and little will have changed. I don't see viable energy source moving frieght and people in my lifetime,,, just being realistic is all,, party on people,,, we live in interesting time, I am heading to the woods for some venison hopefully,,,,,
Coal was put on earth so we can have steam locomotives (which are wunnerful far beyond diesels, which in turn make electrics look like the soulless things they are).
The boneheads in the WhiteHouse went along with a CIA-State Dept. plan to take the Ukraine.The the plan was to back neo-nazi Ukrainian groups,overthrow the government and take the Crimean Naval Base.Indeed,Victoria Nuland leaked the info. of the 5 billion dollar plan already going badly with the "fuck the EU" comment.That way,as it was planned,NATO could bring its' nuclear weapons up to Russia's borders.As well,another cold war era could be brought forth helping the military-industrial complex.
Trouble is,it didn't go as planned.Russia was wise to the plan a long time ago through the old commi-connections and the west lost out like a bunch of bumbling fools.We saw the CIA Director visit there with confidence figuring that 5 billion of tax payer dollars was enough to con and bribe former communist era officials and their paramilitary groups with neo nazi heritage.He was just as lamebrain stupid as the rest of them that advised Obama in his last term of Office.Quite frankly you'd think it was all planned to help make Obama look moronic just like the rest of their idiotic foreign policy decisions.You knew it had gone badly when Obama ordered Prime Minister Harper of Canada who is a right wing neo con himself to start sending military equipment in there and pay a visit under PlanB to meet with the head of the neo cons in Ukraine.
Plan B?It hasn't gone anywhere because of the global slowdown and the EU is bust.Its' Central Bank is insolvent and being held up by swap lines from The Fed holding over 2 trillion in bad real estate assets that are hedged with major German Banks providing hundreds of trillions in derivative hedging.It's just another pyramid scheme like Greece's Finances that were put together by Golman Sachs.The biggest con job in history besides the big real estate busts in Japan and America.
No stomach for a fight with Russia who has over 700 short range tactical battlefield nuclear mobile nuclear weapons.And they're prepared to use them.Obama turned chicken.
So,basically it turns out that both Obama and Harper are both useless dirty cocksuckers and made the wrong choices.They broke Germany's back and ushered in the next phase of the EU's economic destruction.It was the trigger for the slowdown worldwide.Complete idiotic numbskulls.
There goes oil.And to top it off,Russia will now pull out all the stops to produce at record levels in order to gain market share.Non stop.
So,the next time anybody asks you why the price of oil is dropping,tell them how utterly moronic your political leaders are in Washington and Ottawa.
One is a fuckin' crook from Chicago and the other one is a patsy with a big fat pregnant gut and walks around like a big fat slob.
Good analysis apart from falling for the meme that the US proxies are neo-Nazis. As I've pointed out frquently, Ukraine's President, Prime Minister, some major Regional Governors and the head of the Central Bank (the one that tranferred all Ukraine's gold to the Fed for safe keeping) are all Jewish. As are Nuland and her husband Robert Kagan. This despite Jews making up less than 00.20% of the population. The 'neo-Nazis' are just street cannon fodder.
Saudis tapped out
Apple tapped in
http://www.bloomberg.com/image/itWJa5Io_OpQ.jpg
Feels like it might be a bull trap. Hopefully not. Shale oil and tar sand are pretty much the only things keeping USA and Canada afloat.
bubbles keep us afloat .... bubbles
we need a green alternative fuel... like methane from pigshit
we have to be responsible custodians of this planet
i for one will be stocking up on piggly poopers to fuel my future.... hahaaaaaaaa
OK the Irish petri dish is at the extreme end of the euro petri dish but much can be learned from the data
In 1990 transport (excluding electricity) accounted for just 22% (2,017 ktoe) of total primary energy demand, with
thermal uses accounting for the largest proportion of all primary energy at 45% (4,211 ktoe), while electricity
accounted for 33% (3,094 ktoe). This contrasts with the situation in 2013 when the transport share had risen to 33%
(4,275 ktoe), thermal had fallen to 34% (4,430 ktoe) with the share of energy use for electricity generation remaining
at 33% (4,382 ktoe).
Transport energy use reamins over double the 1990 level.
Again what happens to the oil price when the likes of Spain and Ireland get back to 1990 like energy use ?
How many times in history has shale extraction gotten killed by falling demand / prices??????? At least three.
When and where did these shale crises occur? I know that it is an old technology, but I was under the impression that it was never widely adopted.
The situation of the American shale producers is what precludes the possibility of a US-Saudi deal to tank oil prices. This is either the KSA acting on their own, or just a cyclical downturn in the oil market (temporary)
If a low oil price was a viable strategy for the enemies of Russia, the oil price would have collapsed a very long time ago. And this is why the US insisted on sanctioning the sale of oil-extracting equipment to Russia by the West. The US want Russia production to fall so that one of their two major geostrategic enemies is weakened and at the same time their frackers get a much needed boost.
My guess (same as with the move downwards), it's the paper oil people (or shall I say bits & bytes virtual oil people) behind this.
The state dept. neocons are dumb. It's hard to believe because theyre in charge but they're only in charge because they're hyper-aggressive psychopaths who got there by bullying all the normal people out of the way.
So although it might seem unlikely that the neocons would be dumb enough to target Russia via the oil price and screw up shale by accident I think it's highly likely.
that was a secret "skull and bones" tap, that landed on the saudi's shoulder, courtesy of the bush family
Heres the deal.
If you insist on a higher US$, Then you need to reprice everything US
to match that higher US$. Translation; higher US$ gets you lower stock market.
Since it appears the US$ is about 10+% overpriced, then a 10% correction
in stock indices is no problem.
Oh, wait...
The higher US$ and lower oil prices were a gimmick to flat line the Russians???
Oh well, y'all blew that one good. Because when you trigger a correction in stocks, it always
overshoots...
Can the markets support a 20% stock correction without things going south???
Y'all can ask the black swan in the whitehouse. Y'er so busy looking
for one you completely missed the one right in front of you face...LULZ
Possibilities:
1. The Saudis are returning a favor to the Obomber by reducing oil prices before the mid-tems
2. The Saudis are trying to bankrupt/financially destroy shale and oil sand oil
Putin picks up his camelphone and calls the house of Saud and says "Quit fucking with me or I will turn your asses into green glass"
No conspiracy here. It's called options expiry against massive dealer negative gamma at the $80 strike from producer collars. As the put delta faded to zero in the final hour, dealers have to buy back their short hedges. Voila, squeeze.
i think russia gave them a call, and told them their going very, very public on how saudia arabia, with it's ally, america, for decades, have been killing muslums by the 100,000's of thousands.
non-preferred muslums of course.
as long as america, and saudia arabia keep killing muslums, that seems to be the plan, this will, after a few million muslums are killed, make way for a pipe-line, for the preferred muslums.
My dad doesn't believe in peak oil and only cares if there is enough for him to drive his Corvette until the day he croaks.
state dept. neocon mentality:
1) grr i hate Russia so much imma gonna set myself on fire and jump on Putin's back
2) Argh i'm on fire i'm on fire!