WTI going to 30s, OPEC+ cut not enough

(edited)

OPEC+ needs to cut more. Their 1.2 million bbl/day cut is not enough to do anything because Russia and Frackers are producing too much. 1.2 million bbl/day cut shows how weak OPEC+ really is. Russia makes no sense in having little interest in cutting production. Prices dropping $10/bbl means they lose $110+ million/day in revenues. If they cut more and prices rise they gain $110+ million/day for every $10/bbl increase. Oil will remain weak from now on because of EV's, overproduction by Frackers, Russians, OPEC, others. Trump faked out OPEC on Iran. Weak demand, oversupply will make oil weak from now on. EV's are ramping up. Frackers breakeven ranges from $30/bbl to $50/bbl so they will keep producing more until the price drops below $30/bbl. The oil industry will die a slow death. 

Edited by Democrats Tax Everything!

Share this post


Link to post
Share on other sites

OPEC won't cut further, investors will easily curtail production as 90%  of companies play with other people's money. We'll be fine.

Share this post


Link to post
Share on other sites

7 hours ago, Democrats Tax Everything! said:

The oil industry will die a slow death. 

 

780a47ec0b544831799e7967d95d9ed15c8e5bae68580aeef34a984da6ac0420.jpg

  • Like 2

Share this post


Link to post
Share on other sites