RE:Consequencesmarketsense wrote: While I have some sympathy for those who can't afford the repercussions of $90 oil.
I respectively say to you that there was no concern for oil companies or their investors
over the last 5 yrs when oil was in the tank. In fact, the same people who are crying now were fine with the total demise of the industry and couldn't care less about investors
losses.
Now because of the hatchet job done to the industry, there is a structural shortage of
supply. Listen, there are consequences to the anti fossil fuel policy that gov'ts have
been pursuing. Now that those consequences are rearing their ugly head, don't
blame the oil companies or their investors for making money.
Europe made a deal with the devil to get cheap oil & gas from Russia instead of
investing in more expensive developements in the North Sea and elsewhere. Lets
get Russia to supply us on the cheap so we can spend our money on renewables. We
don't like fossil fuels but we like Russia's because they're cheap. Hypocrisy x 10.
As I said, when you screw up big time in life, there are deadly serious consequences.
Gov'ts everywhere want to paper over their mistakes by raising interest rates in an
effort to squelch demand instead of admitting their own damn culpibility in creating
the whole fiasco to begin with. The only proper way to fix this is to encourage supply
growth, certainly not to punish the economy with ever increasing rates. That is an
a ss backwards way of attacking the problem and for what ever gains you may get,
you will be faced with even more problems than you started with IMO
You are preaching to the choir MS , I agree with everything you say but here's the problem . Even with a green light , gold plated invitation , the industry would be hard pressed to meet increased production targets . The only quick solution is pumping up interest rates in an attempt to kill demand although $6/g at the pump will kill demand (and democrats) too .
Price spikes are a fast "sugar" rush but its not sustainable for the long term , every price settles where enough people are willing to pay . As frustrating as the paper market has been , the SPR is ending next month , Russia oil sanctions kick in Dec 5 so the fundimentals point up anyways . Patience might be the most savy move right now .
I get it that OPEC wants to make a statement but sometimes discretion is the better part of valor . I think that keeping the economy going is better than a short term gain in price , $80 oil won't contribute to inflation . Clarity on whether they are cutting quota's or actual production will be important so we'll see how their decision is explained .