RE:RE:Free Fallmouserman wrote: RusticHit wrote: What a Crash down 50% in 2 week why this is crashing hard while FTN DGS DF BK not crashing this was considered safest than FTN but that , is Holding really well though trading 100% over Nav
I dont think FTN and FFN premiums will last, i do believe probably some forced shortcovering due to magin troubles. Some pundits are also suggesting now is the time to buy these at lows....
i think they are wrong. Especially now with the oil price troubles. As we know US and Canada are big producers, but the margins are not big enough for most of these North American produce to make money at prices where the Saudis and Russians are willing to sell it.
US is the biggest producer of oil in the world. And also uses the most per capita.
I worked in Information Technology for an oil company in Calgary from 1984 to 1989. My memory is a bit fuzzy but I think oil was trading at around US $26 a barrel and then dropped over the space of a few month to US $12. It cost the company more to operate their wells than the margin they could make by selling their product. Huge impact for the company with lots of engineers and field personnel laid off. They basically had to shut in many of their producing wells until prices recovered - about 12-18 months. That was the time of the oil patch prayer ...
Please let there be another oil boom - I promise not to piss it all away this time.