RE:RE:RE:Crescent Point needs WTI to stay above $47Russia is very calculating. Russia has a rainy day fund they've been building up for scenarios exactly like this, Saudi has no problem raising $... It's the U.S and Canada, etc that will suffer most...
They (OPEC) and Russia all could pump an extra 3mm/bpd combined for less profit all while running up inventories like they did in 2016... We can't produce & export more due to export constraints (pipelines)...
Russia knows what they were doing/getting into last Friday when they broke the pact...
Add in the corona effect on demand, it's going to be one of the ugliest scenarios imho we have seen...
I'm not buying anything until WTI is in the mid to low 30s right down to the 20s if it ever gets there again (anything is possible, we went down to $26 last time)... I'm personally thinking of selling it all (always late of course, especially when big events always seem to happen when the markets are closed of course), taking a huge loss, and buying back when all the dust has settled as I highly doubt the Russians will be back to the table soon...
The last time they flooded the market, It took close to 2 years for Putin to play ball with OPEC...
Why would they rush back soon given what they pulled last Friday?
This is simply another round of slowing down shale and Canadian energy companies will be collateral damage (as always) & are even more screwed given no political assistance will be provided (obviously)... Expecting quite the opposite actually where Turdeau/Butts will be smiling as Canadian O&G companies try to stay afloat and go under if it prolongs...
GLTA, but at this point, it's futile...