Since 2010 Russia has increased production by about 500 thousand barrels a day. In the same period US production has increased by 3.8 million barrels a day. So...........huh? The oversupply is Russian?
Why won't you give the US independent upstream industry credit for doing exactly the same thing to oil that we did to Nat gas - making it plentiful, cheap and American.
I remember the same happening to McClendon with CHK (Chesapeake). I made a killing when that happened ..... :) You gotta love the boom and bust cycles ..... What part of that people don't understand ?
Sentiment: Strong Buy
All this malady for Yinz oil folks has plenty to do with Russia, and Putin's desperate need for cash to pay for his new arms race. Most wouldn't have guessed that Russia's newly found militarism could cause such disequilibrium in the oil markets, but, the key to military power is determined by arms, and arms is determined by money. So, Russia has to pump every last ounce and sell to any buyer. Combine this with Obama's trashing of the military, and one of the largest users of oil, the U.S. military, and ya got reduced demand combined with increased supply. Next, the frackers and a flood of new oil, with no place to go. Not done yet, Europe and Japan are slipping into recession, further weakening demand for oil. AND THE BIGGEST WAMMIE OF ALL: DA FED. Yeppers, expectation of higher US interest rates.
marco the genius : - ) So, here it is: wait for Putin to get deposed and the Russian oligarchs take back control with business as usual. Until then, stay out or stay short oil. Here's what's funny, Obama claimed that economic sanctions would eventually make Russia see the light in the 21st century. Military action, he said, is less effective than economic pressure. Well, almost nothing he did so far worked out the way he thought, but, these crazy sanctions may be the onlyest thing to turn out the way he said. I wonder if that's all it takes now to make nations behave. It would take a lot more than that to get some of the moron posters on this board to behave, perhaps cyber nuke would quiet them down a bit.
I got this flyer in the mail a few months back, but never got around to looking at it until today. The above headline was one of the teasers it contained.
Ha ha, that newsletter would have cost me a ton of money if I had listened to their advice. I think I will NOT subscribe. In fact, I think I'll scan it for other predictions, and invest the opposite of what they recommend.
Involuntary sale; doesn't matter. Although if he had any brains, he would have sold six months ago.
Probably all true, except that I think a stronger dollar is a good thing. Think about it - exporters complain, but that's really a second or third order effect, not important. Exporters' products are worth what they are worth in terms of other products, regardless whether our own or other countries'. Intermediate numbers (exchange rates) don't matter except in the shortest of short terms.
Directly from the form 4 : "Units sold involuntarily. These units were held as collateral for a loan and were sold as a result of a decline in the Issuer's unit price."
Well, you are correct. If the interest rate goes up then oil will go down,,, if ECB does QE the dollar will become stronger and oil will go down.
17:05 EST - Kolja Rockov, chief financial officer of Linn Energy, sold nearly half of his stake in company in a margin call, the company disclosed. Rockov had pledged units of LINE as collateral for a loan, and was forced to sell 230,900 of them for an average of $9.46 as a result of their decline in value. The company's stock is down about 72% in the last year, and it recently decided to cut its payouts to investors by more than 50%. Rockov now owns 257,122 units directly.
While adding liquidity to the Euro supply will strengthen the dollar, which perhaps causes the dollar price of oil to decline slightly, liquidity in Euro-zone countries should strengthen their economies, leading to increasing energy demands, and a higher oil price in the next few months.
Sentiment: Strong Buy
Fireball, I see on line board it was a margin call, not so bad news other than a moron cfo.