Post by Deleted on Nov 16, 2014 23:00:40 GMT -6
Right now some of the current thinking is oil prices are being dropped by OPEC to eliminate the benefits of fracking in the US because cost will not be profitable in the near future. It shouldn't last much longer the Saudi's spend to much money (State Spending) to maintain these low prices for too long. With a slowdown in the world economy and production, the Saudi's are seeing revenues diminish and need to keep the US, their best customer on the hook. Hence the reason for lower pricing from OPEC with the idea to make fracking less cost effective. Also of note on this topic for Senona, I would expect prices to escalate based on a meeting my sweetheart had with customers and producers last week and one producers topic was when crude hits $75.00 they will slow refining production to maintain higher prices they have gotten used to. Today I think it was about $75.80 last I checked and on the way up. For anyone hedging contracts it might be time to get back in.
I also wondered if it there is a side benefit in reducing profits for ISIL in their sales of oil. Of course if the US was really interested in stopping ISIL they would include their tanker truck oil deliveries in bombing sorties to reduce their ability to make money and buy arms. But 5 sorties a day and administration rhetoric will get you nothing but additional beheadings to make the evening news.
I also wondered if it there is a side benefit in reducing profits for ISIL in their sales of oil. Of course if the US was really interested in stopping ISIL they would include their tanker truck oil deliveries in bombing sorties to reduce their ability to make money and buy arms. But 5 sorties a day and administration rhetoric will get you nothing but additional beheadings to make the evening news.
