GREY:LSTMF - Post by User
Post by
chantal2468on Mar 26, 2015 9:51am
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Post# 23563608
orlandofl...thanx for reply
orlandofl...thanx for reply
I hope you are right about production cuts by opec/Russia/mexico...BUT I am doubtful of that...in 2008 opec cut over 3 million b/d and oil went from $150 to $30....Their cut only stopped oil from MAYBE bottoming at $20 instead of $30...I think they see the futility of their past efforts and realize that most oil producers must cut equally and share burden....they now know that supply manipulation is only effective at the inelastic portion of the curve NOT at the elastic bottom part of the curve.I am like you though....keep watching oil since LTS is merely a levered proxy to the price of oil....they have completely stopped drilling so its like we are just holding a bunch of call options on oil contracts expiring in 18 months.