Oil Extends Losses As Oil Rig Count Drops By Just 1
While gas rigs fell 13 last week, oil rigs dropped just 1 to 515. Crude's initial reaction was to extend losses...
Rig count continues to track a lagged crude price perfectly...
(1 vote)
»
- Login or register to post comments
- Printer-friendly version
- Send to friend
- advertisements -
I’ll buy a barrel of oil only if it comes with a free Spiderman Towel AND a toaster. ;-)
Looney
Peak oil any day now!
"Get thee behind me, Peak Oil"
Inverted world market will rally on this rig count.
It's transitory.
;)
There, fixed it. Firmer prices any minute.
Who needs Oil, were going Green, model glue green.
So should we continue to drill, baby, drill Sarah?
You have something against lower oil and gas prices? Without the extra 4mmbls per day, we would be buying from the Saudis for $150 and paying $6 for gas
15 yard penalty. Late hit.
rip face off raily time?
Everything you say to me
Takes me one step closer to the edge
And I'm about to break
I need a little room to breathe
Cause I'm one step closer to the edge
I'm about to break
Limp.
COP21 baby...
While traveling out on "the range" last week, I happened upon hundreds, if not thousands of pipes, about 2 feet wide, waiting to be buried and connected to oil wells. I passed truck after truck, loaded with that pipe, headed towards that spot where it was being unloaded.
Now what do they know, that I don't know?
They know that they are pulling up product that is being transported to market by less efficient means than by pipeline. This is another way to cut their losses by cutting expenses. Trucking is an especially bad deal when the roads are icy and the wind is blowing.
http://www.platts.com/latest-news/natural-gas/houston/two-texas-pipeline...
Time will tell! But we've seen this manipulation since the late 1970s when they had that commercial where the little girl stood holding her father's hand outside a dark house at night. She said something like, "What are we going to do, Daddy?" and he said, "I don't know."
LOL
When is the IAEA going to make its announcement in Vienna? It's supposed to be 'later on Friday'. That ought to light a derivative fuse.
Interestingly, they were supposed to announce that Iran had completed its nukes detention and was going to get the official green light to start pumping, today. However, they have decided to wait until tomorrow. Go figure! No matter what they can do to stop the market bleeding, today, There will be holiday weekend tears in the Shale and derivative patch. Do you honestly think Iran won't turn on the spigot full blast and pretty much kill the US economy? There is more debt and 'instruments' on the drilling over the last 8 years or so than there was on the housing market. Oil has fallen 69% in three years. It took house prices something like six or seven to fall 63%
Rigs will finsh up on planned wells,,, cap them an wait for better times.
good idea
but that will require 'suspended animation' for the workers and operators.
"No intrinsic value."
http://www.platts.com/latest-news/natural-gas/houston/two-texas-pipeline...
Here's the pipeline. Now who is investing a billion in something that they can't afford to produce?
And how are they exporting oil if they can't afford to replace it?
Thanks in advance for your reply.
Those are two midstream companies. They are the toll booth operators of oil & gas. Their revenue won't stay firm in the areas where the well producers can aford to choke back production to wait for higher prices or on pipelines servicing marginal fields. A lot depends on their contracts (of course). Once the producers have taken product out of the ground, they have to transport it to market or storage. Pipelines should be cheaper their competition, the trucks and railcars.
Declining rigs will, eventually, lead to a shortage of oil, higher prices and war.
There is a problem, though. There is over a trillion dollars in bonds from the Shale Drillers with way more of derivitives with the banks. Below 30$ a barrel starts a cascade effect similar to the Sub-Prime crash. But, this one will be worse.
I initially clicked on this article to see if anyone would bring up the derivatives that will have collateral calls if crude oil closes below $30. Can anyone come up with a good guestimate of how much collateral would have to move if we close below $30 today?
TIA.
The real kick in the teeth will come tomorrow or Sunday when Iran's "implementation day" is announced in Vienna. The US will be closed on Monday and oil will drop like a stone.
http://www.investing.com/news/world-news/report-paving-way-for-iran-sanc...
I'm guessing oil will fall to $15/bbl.
That would be 10% of its highest price.
Then I think things get a little "messy"
in the geopolitical and violence arenas.
Keep in mind, neither the US ... or Russia... want
the price of oil to rise right now. So you can bet
they will do their best to make sure the 2% oversupply
situation stays.
However, for Russia, once the Saudi's are in a terminal
economic dive, they will make sure their shiite allies
( i.e. Iran et al ) are well equipped to ... um... "reduce"
Saudi oil output to more "reasonable" levels. Win,
win from their point of view. Russian allies ( Iran,
Syria and maybe Iraq ) beat back the Sunni's,
( keep on mind that includes ISIS ... yeah that one )
a major competitor is off the market, oil prices and
Rubles get bid thru the roof, and the US$ really starts
turning "green" while the US FRB turns blue... LULZ
all around.
can't believe there is still an oil rig count
Wait till next week, Ye aint seen notin yet, Iran super pumping more glut should bring it down to 15-20 bbl easily.
Iran is scheduled to start shipping 500K bbls per day to start as early as Monday and double that soon after. They have 13 of 22 VLCC carriers loaded off their coast right now...$20 is coming
Oil: Time for a pause of the current downtrend?(a.k.a Wave IV)
http://goldenopportunitytrading.blogspot.com
Iran said over a year ago, I believe, that oil was headed at least to $25.00