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That's stupid (they are, not you). They're killing their own industry.
That was fabricated just like this production BS is.
MW Could this surprising factor save oil from Iran-fueled slide?
By Sara Sjolin, MarketWatch Iran unleashing oil to the market is making traders nervous While everyone is worried about the fallout from lifting sanctions on Iran, there could be a surprising oil-price savior waiting in the wings -- and that is Russia. Not only did the oil-producing nation indicate it is on the verge of slowing production, but also it could set off a chain reaction of production cuts among other energy producers, according to Ole Hansen, head of commodity strategy at Saxo Bank. His assessment comes after state-owned pipeline monopoly Transneft said Russian oil companies may cut crude exports by 6.4% in 2016, according to U.K. daily the Telegraph (http://www.telegraph.co.uk/finance/economics/12100609/Glimmers-of-hope-for-oil-as-Russia-poised-to-slash-output.html). "It's sending a sign to the Saudis, 'OK guys, maybe we should have a rethink about oil prices, because now the price is down by another third since early December and this is hurting like crazy.' So a gesture from Russia in that sense could have an impact," he said. Saudi Arabia has stubbornly kept production high in recent months, even as oil prices have tumbled to below $30 a barrel from over $100 a barrel in the summer of 2014. This is largely due to ramped up production of U.S. shale oil as well as concerns over a demand slowdown in the mist of jitters in the global economy. In such past price slumps, the Middle Eastern nation has often worked as a swing producer -- cutting production when demand and oil prices fell, while turning on the taps if prices jumped -- but is not more concerned about defending its market share (http://www.marketwatch.com/story/opec-might-get-the-last-laugh-on-oil-2014-11-28). The Organization of the Petroleum Exporting Countries, which is heavily influenced by the Saudis, demanded in December that countries outside the cartel move first and slash production, before the organization collectively begin to ax its output. This was widely seen as an appeal directly aimed at Russia. "If we see Russia cutting production, then surely that would be the first step of many required in order for the markets to stabilize," Hansen said. "Then we also need OPEC to become more aligned in addressing oversupply and maybe that could happen if they get an excuse from the outside. Saudi Arabia has invested a lot of reputation in this and if they can be given an olive branch from outside OPEC, I think they would take it," he added. At current levels, a 6.4% reduction in Russian oil exports would translate into a drop of around 460,000 barrels a day, according to the Telegraph. That's about the same as Iran is expected to unleash to the markets once the sanctions are lifted. Latest reports say this could happen as soon as this weekend, which means oil traders will wake up to an even more oversupplied oil order on Monday. Reflecting this expected change, the U.S. Energy Information Administration on Jan. 12 said it forecasts OPEC crude production to rise by 500,000 barrels a day in 2016 (https://www.eia.gov/forecasts/steo/report/global_oil.cfm), with Iran expected to account for most of the increase. The EIA also said it doesn't see the global oil market becoming "relatively balanced" until 2017. However, if the Russian exports drop in 2016, this could bring some relief to the oversupplied markets, Hansen said. "If anything, output is kept stable and that could bring forward the time when demand catches up with supply," he said. "And whatever action we could get now that could help bring forward the balancing date will obviously help the market to establish a footing," he added. But what will this mean for oil prices in the short term? Unfortunately not much, as Friday's session showed (http://www.marketwatch.com/story/oil-plunges-into-the-20s-a-barrel-on-iran-supply-woes-2016-01-15). Crude oil plunged more than 5%, while Brent dropped 4.6%. "Falling 5% on a Friday after being down 20% in two weeks, it's really up in the air how far oil will drop before we see the market stabilize," Hansen said. -Sara Sjolin; 415-439-6400; AskNewswires@dowjones.com (END) Dow Jones Newswires 01-15-16 1144ET Copyright (c) 2016 Dow Jones & Company, Inc. Story ID: 20160115MW000395 Keywords: None Symbols: None
Good work there Ryan.
OK except I fell for the head fake yesterday. Not fun!
The dollar is falling though. That could make a difference.
He's following his own rule. Buy 'em when nobody wants 'em.
New high for the day. 2pm hour will tell the story though.
Don't just look at WTI, follow the oil related stocks too. They are all jamming big time right now.
As I've stated before, we won't get an email when the big boys decide the turn. Remember, they know the numbers and the decisions before you do.
Shale-oil billionaire Harold Hamm is calling for oil prices to double by year-end to $60 a barrel, a call in contrast to analyst projections that have crude sliding toward $20 or below.
In an interview with The Wall Street Journal, the founder and chief executive of Oklahoma-based Continental Resources Inc. CLR, -0.51% predicted the global glut of crude will ease as U.S. shale producers scale down production. Hamm also reiterated his charge that Saudi Arabia and its partners in the Organization of the Petroleum Exporting Countries, or OPEC, are making a costly mistake in flooding the world with oil in an effort to force higher-cost producers, including those in the U.S. shale regions, out of business.
U.S. oil production, which grew sharply as the so-called shale revolution took hold around five years ago, has slowed, but not as sharply as had been anticipated, in response to falling oil prices. Hamm told the Journal that producers are now cutting output at a rate of 1.6 million barrels a year, which would take U.S. production back to levels seen three years ago.
Once the world falls back into a supply deficit, producers can’t reverse course quickly, he said. And with Saudi Arabia already pumping at close to full capacity, it will be difficult to make up the shortfall, Hamm argued.
Hamm’s argued for a rebound since late 2014, when he told the Financial Times that suggestions by Saudi Arabia’s oil minister that higher cost producers in Russia, Brazil, West Africa and the U.S. would be squeezed out of the market were just “bravado.” At the time, Hamm predicted oil, which was trading in the mid-$50s, would rebound to around $85 to $90 a barrel.
The oil rout has been costly for Hamm. The value of his 68% stake in Continental Resources has dropped by around $15 billion since the stock’s August 2014 peak.
Oil futures are down more than 70% from their mid-2014 peak. The U.S. benchmark, West Texas Intermediate futures on the New York Mercantile Exchange CLG6, +2.10% has dropped nearly 17% since the end of last year. Both West Texas Intermediate and Brent crude LCOG6, +1.75% the global benchmark, traded briefly below $30 a barrel this week and remain near their lowest levels in more than a decade.
Analysts at Morgan Stanley have called for oil to fall to $20 a barrel, while others have projected a drop to $10 a barrel. Also read: Cheapest crude oil on the planet can be found here.
http://www.marketwatch.com/story/shale-billionaire-says-oil-to-rebound-to-60-a-barrel-by-year-end-2016-01-14
Fewest idle rigs
Seadrill Partners (SDLP) has only one rig, 9% of the total fleet, that’s currently idle. In 2016, none of the company’s contracts will expire. The company will enter 2017 with almost 91% of its fleet under contract.
Well, couldn't resist. Picked up more @2.67. This used to be 13 bucks. WTF?
MW WTI oil futures finish with a slight gain after 7-session drop
2pm is when drastic moves happen. Stay tuned. Same bat time. Same bat channel.
Drinks are on you. Good trade.
Just remember, whatever happens, the big boys are not going to send you an email first.
A little bounce here.
If this holds above 2.92, I'll add down here.
I assume that filing means GS picked up 2.5 mil more.
Goldman 2.5 million shares?
Oil has tanked hard last several days but SDLP has held over 3. Dividend buyers holding it up?
Then why are you selling D?
By design. The producers could consort to cut back production, but they won't. Remember Peak Oil and what a lie that was? This is the opposite.
This makes zero sense..."At our conference, producers largely did not provide specifics on what capex/ production would look like at $35/bbl oil," they wrote. "Instead, producers spoke largely of their agility to spend within cash flow and ... ramp up when needed."
THM ripping it up. In since .22.
For an indication of future direction, I'm watching the supporting oil equities. What needs to be known about oil is known. At this point, there's neutral incentive for movement.
As usual, the 2 O'Clock hour will tell all.
Got it Griffy- and one penny from the high. Miraculous!
2.86 should have been the bounce point. Better be. Since WTI broke over the naked candle, it should go higher, but I don't trust this market worth a shit, so...
Need to clear 34.15ish for this to be real.
Only hope at this point is that the big money trades out of the DOW stuff into what they perceive as the already beaten down stuff.
Looks like trouble. I've been averaging down but near my breaking point for bailing out. At least SDLP will give me back some in about a week.
Not looking good tonight but fingers x'd.
That makes too much sense. Just stop it.
That's just stupid. An industry that keeps pumping when there's a glut, driving prices even lower is insane unless there's a freaky ulterior motive.
Dollar Dips Against Euro, Yen After FOMC Minutes