Post by
old_dog on Jun 21, 2020 12:19am
Here's the glitch
Russia wants $50.00 oil........Saudi Arabia NNNEEEEEEDDSSSS $72.00 oil, their whole economy is based on a single product....OIL.....Yes sure they taught the world a lesson about turning on the taps and making oil drop so bad that they were paying people to take the oil but the hard FACTS ARE...Saudi Arabia Needs $72.00 oil.....If we have returned to 90% of previous usage based on what those in the know are saying then my thoughts are that we have actually returned to a situation where demand will start to out strip supply. Your asking yourself how can that be???...CHEATING....you clean up the unrecorded oil production that EVERY country fails to record and your in a deficit situation. Give it another month and that glut of oil will soon be deminished. So now comes the question of how high. Big money south of the border won't be too eager to lend money under these conditions so I suspect most surviving companies will be able to ride out the storm and start buying out the weaker failing companies. They won't be drilling just buyiny for now. This means that Cap EX for most north american companies will be non-existent which means a further reduction in supply.
Currently oil WTI is at $40.00.........End of June $43.50 to $45.00.....August....$53.00 to $55.00....Sept.....$57.00 to $58.50....
OPEC + appears to want to hold weekly sessions now if I'm correct...so there might be a more concerted effort to haul in the cheaters before they glut the markets as in the past....another one of those "Where did all of this oil come from over night " when they tally the holdings in the states.
Jets are in the air, cargo ships are moving cargo from country to country, trucks are driving over land....and people returning to plants making things.
old_dog
Comment by
FredZarfloon on Jun 22, 2020 9:54am
What are the chances ATH gets recapitalized and current shareholders wiped out?
Comment by
fellowship on Jun 22, 2020 10:10am
Company is focussed on paying their debt and sustain within cash flow. Shareholders get wiped out only on company is in dire straits to begin with. This is the reason I do not like Nuttal. on BNN he put ATH and BNP in same category with his comments.
Comment by
old_dog on Jun 22, 2020 10:14am
I don't think that's going to happen. They were sitting pretty flush with cash and hunkered down for the long haul. So while they aren't out of the woods they aren't that far in that their toast....It's just a matter of time before oil heads to $50.00.....as per my previous post there are countries begging for higher prices.... old_dog