At 8:50 a.m. ET futures are moderately lower and the price of oil per barrel is down to around $53 a barrel. The market is poised to open lower.
Well so much for oil stabilizing around $55 for the last week, it looks like the new bottom threshold of $50 is in sight. This is quite stunning and as we've discussed, a severe economic adjustment in the world is going on here. Stay tuned.
CNN: Stocks: 4 things to know before the open
Crude oil futures are trading below $53 a barrel as worries about a global supply glut resurface.
1 comment:
The simple truth is the longer prices stayed above $100 a barrell the market was prepared to go to extreme lengths to find and deliver it. That worked as long as demand kept up. Somewhere in the last year that changed and the supply just kept expanding in every direction, something had to give. The Saudis decided they had to make their move at that juncture and they did. Its not the first time historically they've done this. What's happening now is simply to some extent classic economics in action. The Saudis and a few others have extremely low production costs per barell extracted , so they can drive prices down below the production costs of some of the more marginal sources ( like the Canadian and American shale oil fields and deep water rigs.) As these supplies start to shut down the Saudis will keep prices down to make sure they're gone for good. The other supply side source of energy they want to hurt are all the various alternative energy sources like solar, wind, hydrothermal, etc. These especially threaten all the Fossil energy Barons and Imperialists and even slowing them down gives these barons and States more yrs. to dominate the market and extract their product. As far as their concerned to hell with the planet, they intend to get even richer in the mean time and when the shit hits the fan globally they'll own all the best agricultural and water resources and high ground to exit to. The rest of humanity will be left with the shitty end of the stick.
Post a Comment