Trump want cheap oil vs opec want costly.

Oil mostly like to cheap of Trump side another opposite side opec want really costly oil closely saudi want 70 to 80 bet movement maybe whathappen ???  God only know what will to now....

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36 minutes ago, சோழன் said:

Oil mostly like to cheap of Trump side another opposite side opec want really costly oil closely saudi want 70 to 80 bet movement maybe whathappen ???  God only know what will to now....

I don't think Trump wants cheap oil. Trump MAY want cheap gasoline prices.

This is an interesting scenario, to be sure.

On one hand, cheap oil prices means lots of oil demand. And lots of oil demand is good for oil producers, including US shale. And the US has already proven it can withstand lower prices for longer than OPEC can (although it's been suggested that Aramco can get oil out of the ground for $4/barrel--but their frivolous budget needs more). But eventually, lower oil prices will cause US shale drillers to take on additional debt, and there is a limit somewhere as to how much debt they can take on. Surely some US drillers would crumble should oil prices sink too low for too long. 

On the other hand, higher oil prices eats away at oil demand. Renewables love higher oil prices, because people are willing to spend on finding alternative energies when oil prices are worrisome. Necessity is the mother of invention and all that jazz, and oil demand isn't terribly elastic as I believe @Jan van Eck has pointed out in the past.

I guess it depends who is thinking long term and who is thinking short term.

 

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3 hours ago, Rodent said:

On the other hand, higher oil prices eats away at oil demand. Renewables love higher oil prices, because people are willing to spend on finding alternative energies when oil prices are worrisome. Necessity is the mother of invention and all that jazz, and oil demand isn't terribly elastic as I believe @Jan van Eck has pointed out in the past.

I guess it depends who is thinking long term and who is thinking short term.

 

Nah, I don't worry,  my plan is to get my hands on one of those monster marine diesels from a shipbreaking yard in Alang, India, haul it up to Vermont, and park it in the Industrial Park, hooked up to a monster generator, and then when the juice goes out in some storm, with the trees into the grid wire, we disconnect from the grid and fire up the old beast, hey, that's what the refiners sell HFO 180 for!  Run  that monster without a muffler and they can probably hear it pulsing all the way down in Massachusetts!  ohh-rah!

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