Saudi's and goldman suchs probably have all of the cheap oil stocks that they want so now the price of oil will go back up
Having been through this a couple of times. Here are a couple of things to think about.
1. current break even prices in the oil patch are based on boom prices. rig rates and services will drop like a rock changing the break even point.
2. natural gas has a good chance of increasing in price because much of the gas produced today is a by product of shale oil production
3. companies that are well hedged can probably last longer than dictators facing an increasingly cold and hungry populace because their budgets have cratered due to low oil prices. In short, a few months down the road they are going to be having different opinions on production cuts. GTLA
the pain is going to come in the middle east when the governments can't meet their social commitments due to budget issues cause by their failure to reign in production to support the price. the resulting instability is going to make the arab spring look like a girl scout picnic. and I have to think the rulers over there know this.
just a move to shake wall street down for campaign contributions. watch, when they shell out enough the hearing will end with a whimper. read. Extortion: How Politicians Extract Your Money, Buy Votes, and Line Their Own Pockets
No one will take Linn over but I bet there are going to be some great fire sales on producing properties that they will be looking at and at very accretive prices.
the government has never needed a reason not to. This issue isn't even on the radar yet but it's going to be.
they are just journalist making a head line. if they had any brains they might get an analyst job at some third rate bank. if they really knew what they were doing they would be working for or running a hedge fund and making some good money.
banks and insurance companies are on the other side of the hedges not to mention all of the money that they have also loaned to them. As warren would say...the tide is about to roll out and we will see who is standing naked. rails are going to get smacked also.
you're right but given the irrationality connected with the drop in oil prices it may become a bigger bargin