We need speculators flushed out of this market. I hope OIL cracks $50. Once all of this is done, there will not be enough capital to prop up OIL prices. Investment in commodities jumped from $15B to $300B in last 10 or 12 years. Now the gas is coming out.
I could argue that OIL was super inflated before and now returning to normalized prices. There was no reason for OIL to jump to $120 recently. World economies are not growing at that rate of OIL prices from $40 to $145 to $40 to $120. It is all over the place. It is suckers game. It is how real estate got propped up with easy lending in 2005,6,7. Same thing happened to debt for OIL companies. They carry huge debt. Now that underlying assest has collapsed and these companies are in foreclosure crisis mode.
I never shorted! It is a done here! What is there to cover ? Were you expecting this stock to hit $40. May be they fire the management and hire you for evaluating the company. It was a dead beat stock.
WoW You are refusing to accept fundamental changes to OIL industry with OIL down 50%. It is a new ball game when it comes to lending etc.. OIL related debt, you name it. There is no bailouts here..
LOL.. Why would you use more ? Auto Sales are already peaking. You think people are going to go crazy and start driving around no where ?
Looks like they are looking for suckers to re-coup their losses!! Today was good day to unload and recover some losses. It is going to head back towards $10.
How does Saudi control the market ? OIL is traded here in US by US institutions with 100s of billion of $$ by speculators. If OPEC farts or sneezes some Wall St institution catches cold, it is not their fault.
Why ? Can you tell me about losses incurred or dividend suspension ? If you cannot that means it is a stupid buy.
Yep. We want all the speculators to be crushed. It is all here in Wall St. There is no reason for OIL to bounce from $60 to $145 to $40 to $120 to $57. The world economies are not gyrating neither is OIL consumption. OIL should be completely banned for speculation. I would love to see it at $50 and flush out the speculators. Look at the profits of OIL companies in last few years it is massive. Woud love to see them lose billions.
Who will benefit ? Wall St. Crooks. OIL should never have been around $100. We have had enough fear premium built by US banks and institutions for number of years because this is were all the trading money is and you and me are included in speculating in OIL. When OIL was at $150, OPEC said it was not a supply issues it was purely Wall st driving commodities higher. This is again Wall St. OIL prices should be regulated based on global growth and not via speculation. I would like it go to $50 to flush out most of the speculation, because once people are burnt then don't show up for number of years.
The situation is like Mortgage Reits (AGNC for example) last year when rates jumped 100 basis points in a month. Lot of them have corrected 50% in value. Dividends have been cut by 50% and stocks have never really recovered since the slump despite rates have gone lower back in 2% range. Once the speculative money is out, these stocks never go up again.
Never seen sudden turnarounds in any equity so far. Fundamentals are broken here with no bottom in sight. Basically you are trying to catch a falling knife! You may get lucky for $1 or $2 because of volatility but don't expect that this will hit $20 in few weeks.
You still believe that yield will continue at 20%. It is obvious that dividend cuts are coming big time. Right now losses are unknown..
There is a fundamental change in the OIL eco system. So it does not mean there will be recovery and it can take multiple years for recovery. Some companies may not be able to sustain lower oil prices for longer time. It is unlikely OIL is bouncing back to $100 or even $80 soon.