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BL

What is all this "cut" talk. A 10mm bbl cut is like pissing in the ocean. Nobody will notice.

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(edited)

Oil rallied upon mention of cuts.  That's just naked shorts covering. Scares them a bit.

Might bounce a little more on signing of an agreement but that can't last long. 

Russia wants U.S. verbal commitment they will cut.  Doubt it.  Trump won't.  Every country is already cutting.  Russia wants U.S. on the record that they're in with OPEC+ .  ONCE YOU GET IN , YOU CAN NEVER GET OUT.  It's about world wide price fixing going forward.  Saudis and Russia know any amount of cuts will do nothing for prices now.  They are planning for the future.

Besides Russia has NEVER EVER fulfilled their OPEC+ cut commitments. Why would they start now ?  

This talk is silly.  Need to get the world back to work first. Saudis storage tank farms in Antwerp, Saudi Arabia, South Africa, Port Arthur, Tx, China are full to the brim. Then add their tanker fleet (largest in the world) and the newly leased 32 VLCC tankers that are also full.  Sardis have to cut production , just like Russia, U.S.  . . .  like everybody ! 

Saudis tankers are lined up at every consuming country ports.  They will under cut everyone's bids. Unload their oil and their next tanker will be right behind ready to undercut your next bid. 

The price cut is just a Saudi con.  They will flood the world with their supplies until the last available storage is taken.

Saudis will have meeting Thursday.  Then Saudis will say we will be talking/meeting to U.S. oil companies Saturday.  This will keep the shorts at bay.

Short oil Friday.  Deal should fall apart over the weekend.  Make good money Monday. 

Trump need to call Saudi/Russian bluff.  Go with Rick Perry's idea, ban all imports (except for U.S. USMCA trading partners) for 90 days.  

 

This price/market share fight was a long time coming.  The Covid-19 just accelerated its arrival by a year or three.

 

 

Edited by BLA
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