All very true. The shale oil producers do not have a big lobbying block, so the obama administration and congress can ignore their plight. Plus, anything that weakens oil producers in the U.S. also weakens support for the GOP, as obama knows well. The shale oil producers are unprotected from adversarial politics.
The oversupply is 600,000 per day, not a static 600,000. So the 10,000 per day decline in the US still leaves a daily oversupply of 590,000.
Well, LINE was certainly an easy kill, if you're looking to credit someone. Not sure any institutions or anyone else of material impact listen to TheStreet.
Sentiment: Strong Buy
Traders should worry whether oil has spiked before its final fall and ultimate floor.I don't care, I'm in WLL for the long-term oil recovery / buyout.
IEA estimates an oversupply is 1.1 million barrels PER DAY and OPEC estimates it's 600,000 PER DAY. So the US cutting back only 10,000 barrels PER DAY does little to cut the oversupply. If you believe all these numbers, there is a lot more pain on the way. Don't forget, the market is in contango and there is a lot of supertanker storage waiting to be used as well.
Keep your head about you. Oil generally bottoms Jan-Feb, but this year may have already bottomed given the momentum we've had. If I were in your shoes I would wait to see what these companies do with their distributions and what happens to oil AFTER March. I would not be a seller at the lows, but would wait until the driving season of May/June.
They have to. For every barrel they pull out of the ground at $ (fill in your low number), they spend close to $120 on social programs. Oil is all they have to fund anything.
CAPEX cuts are baked in. And lenders are still lending to the segment so that is good. Look for the sauds to pull back faster than anticipated.
Market is in contango. Why not buy the oil and store it?
If they can find some stock for stock deals that represent low cost of acquiring reserves, then yes that could work. Just don't look for them to be cash buyers in a bidding war for bankrupt assets.
The sauds are not long for this earth.
There is no glut. The moon worshippers are desperate, their people,will riot, the Persians will invade, and the house of Sfraud will collapse.
Everyone says there's a glut. There is no glut.
Just remember, options can be exercised at any time. So potentially they have left money on n the table so to speak with those sold puts. If I were the holders of those puts I would exercise them if WTI starts soaring.
All,that said, do we know what dollar value they have n those options? Like you, I doubt they would manage them aggressively.
Saudis shot their wad, they have no more. At this point, it's meaningless talk from the moon worshippers.