GREY:WFREF - Post by User
Post by
iwpeteon Nov 28, 2014 4:51pm
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Post# 23175739
In the race to the bottom-Who's toast
In the race to the bottom-Who's toast
Putin said "Russia will cope with the rout in crude oil", and adding that “we are satisfied overall with the situation and do not see anything so extraordinary in what is happening. Winter is coming and I am sure that the market will come into balance again in the first quarter or toward the middle of next year."
It's a race to the bottom between Russia with its higher cash costs, and the US shale sector, loaded to the gills with billions in junk bonds.
Venezuela has about 2mm boe/d, and the country is broke, the currency is toast... so if you're an oil worker will you work for nothing. Maybe China wil step in and save the country??????
Mexico is highly dependent on tax revenue from oil (so is Canada). Expect at least a 0.5% colapse in gdp. If it continues Mexico is toast.
The bigger picture is the derivatives. Here we have hugh positions in oil and gas and there are big winners and big losers, except the big losers won't be able to pay the big winners, more toast.