/biz/ - Business & Finance

GUYS IT'S ONLY A BIG DEAL IF FUTURES HALT
literally nothing fucking bears btfo

BULLISH BUY CALLS

SECOND FOR SAND
LET IT BEGIN, TODAY I HAVE FLIPPED A 4-HEADED COIN, AND I BET HEADS

Alright /biz/, let's have an exercise in logic and learning in the oil sector. Cause it's after-hours and people may be interested in picking up the commodities market.

So U.S. oil Drilled is predominantly light shale oil, but the Refineries are almost all heavy oil refineries (because cheap OPEC oil was easier to import and refine as heavy oil).
Now light shale oil = gasoline supply++ and heavy oil requires 'sweeteners' to become light oil (I believe). Due to the erratic pricing of gasoline/light shale oil refining (see: supply/demand), U.S. oil companies don't wanna delve into light oil refining.

Now, I see many United State mineral producers and oil companies, right? Oil's trading at 65 dollars a barrel, but it seems like production is through the roof for the U.S. currently, and the OPEC is planning to flood the market.
The oil producers domestically are selling the sweet crude to china due to the demand from Chinese refineries.

The question is, with brent crude traded to china to be refined, and OPEC delivering the heavy oil that the U.S. can refine cheaply and easily to fufill U.S. demands--
Do you really think that the China/United States trade war tariffs are going to hurt U.S. producers of Brent Crude? It seems like there's certain materials that is used in domestic production of oil, that has dropped 20% last month...
(Supplementary Information: 'Shipping data in Thomson Reuters Eikon shows that U.S. crude oil shipments to China have soared in value recently, jumping from just $100 million per month in early 2017 to almost $1 billion per month currently.' == Domestic Production is a fast growing metric currently.)