And his buddies in Saudi Arabia know exactly when they will withdraw a million barrels a day from the market to begin the ascent of world oil prices. Before then, they will all have their pick of upstream companies at huge discounts to fair value - easier than shooting fish in a barrel of oil.
Not now though, at least a quarter more - maybe Memorial Day just for extra drama. Just like Thanksgiving on the way down.
You were right, and I am moderately pleased with the reduction. I think it will be all clear to buy more shares as soon as the reduction is factored in by everyone - today or tomorrow.
WTI is holding tough here over $45.00. When/if it breaks that we may get the last leg down. GLTA longs.
Happy MLK day! US rig count continues to drop substantially: http://finance.yahoo.com/news/u-rig-count-falls-most-152403488.html
Baker Hughes reports tomorrow am and they have the definitive rig counts.
Exactly. And the Saudis cannot assume they operate in a vacuum. Strange domestic and geopolitics are also in play here. When I see the Saudi Princes saying we will "never" see $100.00 bbl oil I know they are playing poker as that is so very wrong. The issue on $100.00, absent something like cold fusion working, is when, not if. Same for $140.00 again BTW.
The saucer shaped thingy I agree with. The spikes are traps, yes, until they become the saucer.
Just like drops, the big rally will start with no one really believing it.
I have to admit that made me laugh. Yes, that is what it feels like - exactly. LOL.
You know it's bad when you wake up and are afraid to turn the terminal on. ;)
1998 was supply, 2008-9 was demand. The result for prices was pretty much the same both going down and coming back up.
Management has been slow, but the hedges were in place. They will allow survival is most of the probable scenarios. GLTA longs.
I agree with those predictions. I'd like to know what KarenLupa thinks though. ;)
Though I am trying to hold myself back, and stick to my game plan, I pulled the trigger about 15 minutes ago. Got more.
Buy when oil is flowing in the streets!
Lots of folks bailing or your fellow shorts piling on. Dramatic action, that's for sure.
Not at all. Last time we were down at this price the distribution was entirely done away with. The subsequent recovery was very profitable. Only those that need the distribution to pay bills with need worry. Everyone else can just play for capital gains and the eventual resumption of a distribution.
Naked shorting can take anything to zero. It is illegal. I wish it were penalized more and with some jail time, but if the SEC ever cared they could ruin anyone's life over it.
They just announced another .04 monthly dividend. Good news, I guess.
I agree with you NA, but they will announce it soon enough. It may be that the board doesn't like your post because they do not like anyone implying that the dividend be cut. IN that case, there is not enough sand in the Sahara to bury all those heads.
This dividend is an issue, and just as likely outright suspended as reduced.
I believe we are now lower than the lows of 2009, and oil shows no signs of stabilizing yet. Next stop Morgan Stanley's bearish worst case price of $42 on WTI?
Iran already making noise it seems: http://news.yahoo.com/iran-venezuela-vow-neutralise-oil-price-problem-135329358.html.
This quote is along the lines I expected: "Iran's supreme leader, Ayatollah Ali Khamenei, also met Maduro and denounced what he called "the bizarre decrease of oil prices in such a short time."
"This can only be a political act... Our enemies use petrol as a political lever and have certainly a role to play in the lowering of prices," he said, without elaborating.
Remember, these guys do things like declaring was on the USA every now and again. They are a threat to the Saudis who have no chance against Iran militarily.
Great ideas to help figure out where we are going with this. The Saudis do need to be careful though. At present prices USA is ok with this. Lower, maybe not. Iran is a threat to the Saudis. I wouldn't make them desperate - though they all need the straights of Hormuz, just what would stop the Shia Superpower from waltzing in and taking oil fields from the Gulf States if they felt pressured? Saddam did it for similar reasons.