RE:One has to laugh.....(but not necessarily ones a$$ off)
quote from dabeauty
"I suppose that some knew that Brent would drop over $20 per bbl since late June. You know....the real smart prognosticators that post here (unfortunately). However the current price has much more to do with the market fickleness than with IAE"
actually there are people out there, including myself, that try and make an educated guess as to where energy prices are heading if one is to invest in energy stocks. However dabeauty dosesn't seem to understand this from his post. I'll list, AGAIN, my reasons for my call on the drop.
1.usa is getting closer to energy self sufficiency, every year they are importing less oil than before
https://www.eia.gov/todayinenergy/detail.cfm?id=16511
https://www.eia.gov/dnav/pet/pet_move_impcus_a2_nus_ep00_im0_mbbl_a.htm
2. russia and china signed a 400bln dollar energy pact in which russia will be supplying china with natural gas (well below market levels) for the next 30 yrs) china is making a huge move to nat gas and nuclear for obvious reasons (pollution). this influx from russia WILL lower the amount of oil china ultimately imports. plus the chinese economy is slowing and has been showing signs of this for months.
3.Iraq has a huge mount of oil and currently produces a fraction of their potential, whcih will be needed to rebuild the country this will work it's way onto the market over the next few years.
4. poor econonmy almost every where in the world except north america, so a slow down in consumption is also a reason
5. mexico, production there has been falling fairly drastically in recent years. receently they have passed laws to allow foreign capital and oil companies to invest in mexico. this is a real wild card that no one seems to talk about but it is real and could be bigger than people think. new technology could bring mexico back to where it was as an oil producer
https://www.forbes.com/sites/doliaestevez/2014/08/14/after-79-years-of-nationalism-oil-rich-mexico-welcomes-foreign-capital/
now i'll add afew more that have occured since my reasons for the call on the drop, and i might add are all also negative's for the price of oil. in no specific order
- the price war between russia and the saudis to maintain market share
- libya producing much more oil than was thought possible, at least for now.
-the coalition against isis, this will expediate iraqi's ability to get more oil producing and to market
-europe is in worse shape than was thought even a few months ago, there is a real poddibility of monetary crisis there.
sooooo dabeauty claims this is all just market fickleness??????? now i am LMAO more than i ever have, just wow is all i can say>>>>>>>>>>>>>>>>>> LMAO LMAO LMAO LMAO
I have a really bad feeling that iae's timing with stella could be absolutely brutal.
cheers ferret
ps where's my little buddy crow???????