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Post by zuolun on Nov 29, 2014 4:24:22 GMT 7
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Post by oldman on Nov 29, 2014 12:18:39 GMT 7
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Oil
Dec 1, 2014 15:15:09 GMT 7
pain likes this
Post by oldman on Dec 1, 2014 15:15:09 GMT 7
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Oil
Dec 1, 2014 16:55:52 GMT 7
oldman likes this
Post by zuolun on Dec 1, 2014 16:55:52 GMT 7
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Oil
Dec 2, 2014 7:31:52 GMT 7
pain likes this
Post by oldman on Dec 2, 2014 7:31:52 GMT 7
Logical reason for a cartel not to assert its influence...... but I doubt this was that intentionally. Once market forces come to bear, it is all a matter of supply and demand.... and the market will get used to true market forces and prices, especially when there are now other producers of oil like US shale oil. Oil prices keep plummeting as OPEC starts a price war with the US - 28 Nov 2014 |
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Oil
Dec 2, 2014 8:24:52 GMT 7
oldman likes this
Post by pain on Dec 2, 2014 8:24:52 GMT 7
Logical reason for a cartel not to assert its influence...... but I doubt this was that intentionally. Once market forces come to bear, it is all a matter of supply and demand.... and the market will get used to true market forces and prices, especially when there are now other producers of oil like US shale oil. Oil prices keep plummeting as OPEC starts a price war with the US - 28 Nov 2014 OPEC is trying to cow US shale oil producers into greater debts and losses. For Saudis, they have the financial muscles to withstand oil at US$40 per barrel. Now it is a matter of who is going to blink first. US shale oil producers requires US$70 per barrel to be profitable. China cannot absorb all the petroleum crude. How will all this goes? |
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Post by zuolun on Dec 2, 2014 10:34:35 GMT 7
Logical reason for a cartel not to assert its influence...... but I doubt this was that intentionally. Once market forces come to bear, it is all a matter of supply and demand.... and the market will get used to true market forces and prices, especially when there are now other producers of oil like US shale oil. Oil prices keep plummeting as OPEC starts a price war with the US - 28 Nov 2014 OPEC is trying to cow US shale oil producers into greater debts and losses. For Saudis, they have the financial muscles to withstand oil at US$40 per barrel. Now it is a matter of who is going to blink first. US shale oil producers requires US$70 per barrel to be profitable. China cannot absorb all the petroleum crude. How will all this goes? OPEC’s decision to keep its current production rates and let the oil price fall indicates that they lay their cards on the table to Lose the battle win the war. OPEC will show hand in the next Ordinary Meeting in Vienna, Austria on 5 Jun 2015. By then, all the weak players would be flushed out; time and patience are vital to win the oil game.  |
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Post by zuolun on Dec 4, 2014 8:48:25 GMT 7
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Post by zuolun on Dec 4, 2014 10:22:27 GMT 7
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Post by stockpicker on Dec 5, 2014 8:42:20 GMT 7
This oil war reminded people about the 1986 oil war when oil price went down from $27/= to as low as $7/= per barrel. The 1986 oil war was actually caused by World economy slowing down and the US's oil import cut from 45% in 1977 to about 28% in 1983. There were few oil drillers in Texas. The Saudis was more fed up and wanted to teach the other OPEC members a lesson. en.wikipedia.org/wiki/1980s_oil_glutIt took them about 3 years to regain oil price to its previous glory of $27 per barrel.  This time, US and other World's economy are slowing down, reducing oil imports. How long this will take oil price to regain its previous glory is unknown. However, here is something of a different scenario than 1986 to ponder about 1. US is producing shale oil to some 9 millions bpd or about 30% of OPEC; many of these shale oil drillers in Bakken have already sunken their cost. They can survive by just paying low interest and may be moderate running cost; 2. Bank interest is at all time low, next to nothing; 3. US printed trillions of USD, bulk of them flowed overseas to buy cheap assets and high yield products. Analysts said this US currency carry trade might have already started and will haunt the World economy, pushing not only USD, US bonds and stock markets skyhigh but also causing some other economies to fail much like what happened to Iceland in 2007 when there was a Yen currency carry trade; 4. As US increases interest rates, the rest of the economies like Euro, Japanese and Chinese might review their interest rates. This will cause massive currency carry trades all over, sending the World economies into a spin, prolonging the recessions. 5. The 1986 brought painful memory to the US Gov. Is the US Gov ready to see shale oil drillers go bankrupt now that Russia is also a dominate player in oil market? They have seriously talked about XL pipeline from Canada to Mexico Gulf and brought this pipeline project to the Senate recently Judging from the chart that oil price cut below critical trendline and failed to regain and fell again, oil price might be doing the 3rd wave down cycle which can be very long and painful.  |
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Post by zuolun on Dec 5, 2014 9:08:50 GMT 7
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Post by zuolun on Dec 6, 2014 5:04:14 GMT 7
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Post by zuolun on Dec 8, 2014 21:20:33 GMT 7
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Post by zuolun on Dec 11, 2014 9:27:57 GMT 7
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Oil
Dec 12, 2014 4:46:07 GMT 7
Post by oldman on Dec 12, 2014 4:46:07 GMT 7
Plunge claims its first scalp as Red Fork Energy goes under - 12 Dec 2014 The industry is awash with companies that have borrowed money to fund the rollout of additional wells but the dramatic collapse in oil prices has left many companies battling to service debt commitments.
Shares in Red Fork were worth as much as 38c a year ago but had plummeted to just 0.6c at the time of the group’s collapse.
It had raised more than $47m at 43c a share in mid-2013 and another $50m at 67c in September 2012 as it looked to pump cash into additional wells across its fields.
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