Post by
lemeilleur on Jun 21, 2017 8:15pm
new oil reality
the price of crude oil is no more control by Saudis. It is now controlled by U.S. shale producers. And they is no unified way of doing drilling .So it s like a gold rush. U.S. supremacy in mind. Money the driving force. But unfortunaly , it is like a train at full speed that nobody can stop.
What is the resistance point? it should be $40 but without any signs , remorse. words that they must stop adding rigs or slowdown productions from the U.S. shale producers. Another perfect storm might bring disasters to oil investors.
At $40 many U.S. shale producers will see their debts increase a lot.
Under $40 then and only then maybe the U.S. shale producers will be force to satop adding rigs and slow down substantially production.
But it should not be like that. Their should be a discipline and an economy sens. That it is better to produce less for more money.
In the meantine, It is a bad situations for many. and big investors are pesimists as they don t want see their investments go down.
So with rigs adding up everyweek , the fundamentals are broken.
I hope the $40 resistance point is not broken because then it s a real storm and panic and downward again
Comment by
MestQalander on Jun 23, 2017 8:55am
In 2006, US imported about 14 million bbl oil daily, now they import around 4 million. So the reality has changed. Saudis may try again to improve l the oil price as they want to cut the oil supply to the world. Oil prices have become a game of mouse and cat.