did anyone notice who the customer is for those new jackups? aramco...the saudi govt. the ones that are pushing the price down to pressure the frackers out. those arabs will need every jackup pumping at full speed to keep the pressure on. kind of ironic that seadrill has 94% of its floaters working but 98% of its jackups on the job now. particularly since jackups have a higher break even cost.
but the arabs dont seem to care about cost right now..they just want every drop of oil they can get their hands on regardless of price. price fixing.
i stand corrected..it was built in 1998..thats when they started building it. as i said it would have been far better if the rig had come to the job site in one piece rather than being patched together. one deepwater horizon disaster will set you back at least a year...permanently in some ways.
he is "only" 70. but if he can manage it at his age i give him all the credit
goldman sachs position on JCP is a good example. they recently downgraded JCP to sell claiming they will never make money again AND YET THEY JUST LOANED THEM ANOTHER 1.75 BILLION DOLLARS!!!!!!!!!!!!! billionaire wheeler dealer george soros has taken a 9% stake in penney.....is that because he believes in JCP as a going concern or because he has noticed that 32% of the stock is short and he is simply looking to squeeze this tomato one more time before it rots? knowing soros reputation i know which one i think.
still relevant to those who think long term. and always far better than news from questionable sources.
anyone who thinks they need to be steered to every little gloomy prediction in the media about how the price of oil will be low no matter how bad the reasoning is behind it titus is your #1 source of information on this board.
i would rather be long at $50 a barrel than $90. looks to me like people are still going to need oil at the end of the day.
the article goes on to state that the majority of oil suppliers including the saudi finance chief think the price will go up. this is what you do isnt it titus? you select facts that support your position and then prune off the parts that dont support your little theories.
according to the article it also claims that the saudi finance minister claims that oil could go to $200 a barrel if infrastructure is not upgraded. you also failed to mention that the article said the average analyst forecast oil prices being $74 this year and $75 next year.
if you do not stop citing only those facts that support your position that oil prices will remain low rather than those that do not you should no longer be regarded as a reliable source of information. down arrow now please you little troll. :o)
its called a shakeout. the suckers who trusted morgan stanley yesterday ran like a panicked herd selling for whatever they could get. today buyers are coming back in cautiously looking for bargains nudging the price up only a little. they will almost certainly buy and hold until they get a better price.
it is the cautious buyers who set the long term price of a stock not the panic sellers.
uh....what i heard is that brent is easier to turn into diesel while WTI is better made into gasoline but that there is not a lot of difference between them. from looking at a historical price chart i would say that brent commands a slightly higher price of $2-4 on average but when the gap widens significantly, as it has now, the tendency is to substitute WTI for brent. the gap is now down to 10 bucks a barrel(from 14) as i write this and i believe that to be a sign the price is heading back up. lol..could be wrong as hell though..we shall see,.
at 92 million barrel of world oil output the price of oil was 90 dollars a barrel. at 96 million barrel a day output the price of oil is 50 dollars a barrel(60 if you look at brent). so which way do the worlds oil suppliers make more money?
$90 x 92,000,000 or
$50 x 96,000,000
eventually the oil producers will stop fighting over who gets to pump that extra 4 million barrels because they are tired of losing money.
you should keep an eye on both of them but WTI is the fracked oil and rumor has it OPEC are trying to drive them out of the market or get them to ease off on production. the $12-14 dollar gap between brent and WTI is at record levels and is not rational in a normal market where supply and demand are the only factors used to explain the price of the underlying commodity(oil).
in normal markets i would agree with you that brent is the one to watch..but WTI is the market that is subject to price manipulation and thus the one that is dragging brent down i believe.....because brent and WTI are almost identical commodities.
no squeeze yet ivo. 41 million shares shorted and only 19 million have been traded so far. easy to cover still. the fun is yet to come.
thank you ivo for sharing your vast knowledge with us.. it is a pleasure learning from such a master my friend.
after they stockpile the stuff to maximum capacity they have either one of 2 choices...they can start selling off their "inventory" which would temporarily drop the price but the price would come back up when that 'supply" ran out. the better question is why are they stockpiling oil at all? only one possible reason: they do not like the price..they think it is too low with respect to demand for oil and they would be correct.
of course if the price rises to acceptable levels they wont need to stockpile to maximum capacity.
the second alternative is to simply dump the oil out onto the ground once maximum capacity is reached....but wait a minute...that would be really stupid wouldnt it? i mean you could just shut down production and not waste the stuff before that happened. or buy some barrels to put it in....
no tom. i think if you researched that you would find they had a buy on SDRL when it was around 40.