Post by
braincloud on Jan 19, 2016 8:46am
Iran
It strikes me as being very strange that Iran would be talking about how much production they'd be bringing into the market. I mean, if I were them why would I be talking the oil price down with the threat of bringing on millions of barrels . It just hurts themselves. The only thing I can think of is that it hurts Saudi Arabia the most. Given the current diplomatic status between the 2 of them I have to think that they can't produce what they say they can. Also, given that their relations are strained at best , murdering a S.A cleric didn't help, I have to think that any foreign investor is going to be very cautious when approaching Iran. Moreover, given that Obama has just a few more months in office, there's no telling if sanctions might be reinstated by the next administration. S.A. might have more influence on the U.S that than the likes of Iran. I call bull sheit on dramatic increases.
Comment by
wallop13 on Jan 19, 2016 11:25am
I think with oil at these levels quality energy stocks should be more attractive then ever. 50% of US production is't even viable below $70. I expect steep production declines from the US this year, definitely in excess of anything Iran could hope to produce.
Comment by
good40 on Jan 19, 2016 12:10pm
2016 is going to be a terrible year for all oil stocks. With that in mind, better to buy next year rather than hope for a rebound from current prices.
Comment by
braincloud on Jan 19, 2016 12:31pm
Thank you for your insightful commentary. Where would we be without you. What's more where were you a year ago? You ought to start a hedge fund. You are brilliant!!! Such insight is rarely seen on amateur blogs like this. We are truly blessed!!!
Comment by
wallop13 on Jan 19, 2016 12:40pm
I don't agree. Oil will not stay at $29 for the rest of the year. Oil will be the main catalyst for the energy sector stocks that are viable in a sub $60 oil environment.