Tonite US market open will see another 3% drop in oil price......and might trigger a massive sell off in Dow jones, then wat will happen to our market on Monday?? Runnnnn
The market is oversupplied by 2 million barrels a day, according to Mohammed Al Sada, Qatar’s energy minister ------------------------------------------------------------------------------------------------------ Are the OPEC and non OPEC members going to self regulate to cut production by 2 million barrels /day? The answer is NO NO NO
The obvious facts are as follows - OPEC members are not in agreement with one another. Venezuela wanted OPEC to cut production but Saudi Arabia decided against it and wanted the non OPEC members to do so - a member of OPEC had blamed non OPEC members for the price down fall but OPEC had decided against a production cut - Shale Oil production in 2015 will increase further in USA due to huge investments that had borne fruition in shale oil production in 2014 and beyond - Does Saudi really know the marginal cost of producing shale oil in USA?
The recent improvement in Crude Oil price was due to covering of the shorts. The fundamental of supply versus demand does not support an increase in Crude Oil price...the supply of crude oil exceeds 2 million barrels/day now...It may even widen in 2015. Current price of crude oil may not even sustain come 2015...
Standard & Poor’s Ratings Services revised its outlook to negative for Royal Dutch Shell Plc (RDSA), Total SA (FP) and BP Plc (BP/) as the oil-market rout driven by weakening demand and a flood of supply from American shale fields threatens cash flow into 2016.
The credit-rating company also cast a dim eye on Houston-based ConocoPhillips, saying it’s facing similar cash flow pressure, and said it may cut the ratings on Eni SpA (ENI) and BG Group Plc’s BG Energy Holdings. S&P cited “the dramatic deterioration in the oil price outlook” and the 50 percent increase in debt loads for the biggest European oil producers since the end of 2008. -------------------------------------------------------------------------------------------------------
Look at the big picture...Big Global Oil & Gas companies are facing cash flow pressures.....it will get worse in 2015 and beyond...
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
nice1
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Posted by nice1 > 2014-12-12 12:32 | Report Abuse
what is the best price to buy? happybublepink