/biz/ - Business & Finance

Crude oil is headed to the $20s. Goldman Sachs was right.

5 things we are laughing about this morning:


1. China is rolling over again adding leverage to our dumped oil effects.

2. "It's got to come back!"

3. "The Saudis need $100/bbl to fund social programs..." My sides....

4. "Let's take a look at your loans in a $40/bbl environment..."

5. So-called energy traders with fauxhawk haircuts, horizontal striped business casual golf shirts, Chinese symbol tattoos on exposed portions of their bodies and trading "gods" who own castles.

>>870752
Harold Hamm called OPEC "toothless tigers" a year ago. Andy Hall, who recently lost $500 million, thinking a bottom in oil was in, said essentially the the same thing for the last 12 months. They both believed the Saudis need over $100/bbl to "maintain social programs". Basically saying the only way the Saudis can get monies is to cut production and let prices go higher in response.

But the Saudis have about $600 billion in "reserve" cash and instead of using their "savings" (the reserves) the FUCKED the long price bettors and have gone to the debt markets (borrowing monies) to meet their dollar demands.

That is why the CME has a market for $10.50/bbl December strike price. Saudis don't need to cut production to get more monies for their oil.

>>848745
That is why the Saudis want WTI in the $30 price range.

>>836851

>>769462
Nope.

>>767739
Seriously? A picture, in this case a chart, is worth thousands of words. They are drilling the fuck out of their lands to tap into the oceans of oil beneath it. What will they do with that oil? I bet they want to monetize it......by selling it into a market that has a lot of oil ready to flow.

I used to like dove hunting in Midland, TX, with those rough individual oil producers and members of th Texas Railroad Commission, but the Midlanders don't invite me anymore for some reason.