Friday, August 21, 2015

Dive

Reuters: Oil dives below $40 after rise in U.S. oil rigs
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4 comments:

Glynn Kalara said...

Oil is in the toilet , but gas just stays steady anyway. It's obvious that a whole lot of middlemen are now in there taking the savings on the downside. Hell at this rate , I half expect gas to go up as oil goes down soon. It makes no sense , but Big Corp. crony Capitalism makes little sense.

6:46 PM
Jim Sande said...

What do the Saudis have in mind here.

9:14 AM
Glynn Kalara said...

I'm not really sure my friend? Actually, I think the Chinese stock market collapse might have caught even them by surprise, although many analysts had been predicting it for mos. Maybe, there hoping lower oil/gas prices will give a boost to the Chinese and our economy keep markets somewhat kited on cheap carbon? I'm not sure , but right at the moment it appears their ploy to crush the marginal production facilities ( like Canadian shale and American shale gas) seems to have failed miserably. Yet, gas prices are NOT reacting with a sudden plunge like they did in 2008-09 and last year. Something in the connection between gasoline and oil has been uncoupled this last yr. Not sure what or who it is that has jumped into this void, but they have. Profits, huge profits are being made on the increasingly weird spread between the two. I no longer believe gasoline will fall to below $2.00 again in the short term.

9:40 AM
Jim Sande said...

Still the Saudis could back the F+++ up. They see China they're not dumb, but they're continuing. It's basically a bunch of young Harvard MBAs out to make a name. This is youth driven idea.

11:30 AM

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