Monday, December 15, 2014

You Die, I Die, Everybody Die!!!


There has been a lot of oil talk recently, and seeing it reminded me of the above clip.

Unfortunately, as much as I hate to cite irresponsible news sources, I am citing CNBC. On the plus side, I am not quoting them, but I am quoting people that were included in their article.
"It's (oil) actually much weaker than the futures markets indicate. This is true for crude oil, and it's true for gasoline. There's a little bit of a desperation in the crude market,"

"The Canadian crude, if you go into the oil sands, is in the $30s, and you talk about Western Canadian Select heavy crude upgrade that comes out of Canada, it's at $41/$42 a barrel. Bakken is probably about $54."

"In the actual physical market, it's fallen by even more than the futures market. That's a telling sign, and it's telling me that this isn't over yet. This isn't the bottoming process. The physical market turns before the futures,"


Tom Kloza, founder and analyst at Oil Price Information Service

May the best man win, free-for-all fighting. Whoever has the lowest cost of production and can continue bring profitable at this price will survive. That seems to be the current mentality of the oil producers now.

This is simple game theory.

You die, I die, everybody die.

No comments:

Post a Comment

Observe the house rules.