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!

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

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7 hours ago, Democrats Tax Everything! said:

The oil industry will die a slow death. 

 

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20 hours ago, Democrats Tax Everything! said:

The oil industry will die a slow death. 

There are many uses for oil, a significant portion of which are increasing despite our best efforts.  It might be more accurate to say the oil industry will consolidate.  I'm not just referring to the oil companies; my guess is that the oil-funded welfare states will collapse, giving up their market share to others. 

When the weakest links disappear from the market, those who remain will enjoy higher prices.  The question is, "Who has the deepest pockets?"

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