"Whatever it takes" mentality pervasive. If Trump caves to Hamm, Sheffield, Perry, al-Fahlid and OPEC he will lose in 2020

[SKEP + 229]

Trump's base will dump him, like yesterday's newspaper,  if he supports oil quotas , thus increased gasoline prices.  In addition higher gasoline prices will dim U.S. Consumer Economy running up to 2020. Consumer Economy is the sole reason U.S. is bucking worldwide trend.

I still believe in free markets. Supply and Demand will prevail.  OPEC does not know how to function in a free market. They will get a lessen in Free Market Economics come 2020.

Khalid al-Fahlih , "We will do whatever necessary" rhetoric has now been taken up by the likes of Sec Rick Perry.  It was only a few years ago that ALL of Texas (including Perry) were hounding Congress in 2015 to repeal export ban on U.S. oil claiming U.S. is at a disadvantage. US should promote Free Markets. They claimed U.S. should be able to compete in a Free Market . Congressman Ryan (Koch Brother's boy) slipped the repeal thru during the omnibus budget bill end of 2015. My how a few years changes everything.

If the U.S. promotes quotas so MBS can sell $2.00 oil at $70 to $80  will guarentee Trump will be a one term President.

Energy Aspects Consultancy had been telling us oil is in tight supply for 7 months. WRONG. 

Energy Aspects said Brent pricing was in backwardation because of weak Demand in future. WRONG. 

Energy Aspects then said what they meant was the "perception" that Demand will be down in the future  . . . but supply is still tight.  WRONG. 

Supply is growing.  Demand is waning. 

ARAMCO CONF CALL MADE 2 IMPORTANT POINTS

(1) FIRST HALF PRODUCTION AVG 10 MM BBLS/DAY.  SAME AS 2018 . . NO PRODUCTION CUT THIS YEAR. ARAMCO TELLS THE TRUTH.  OPEC MISREPRESENTS TRUTH (LIE)

(2) " WE'RE SEEING GOOD DEMAND FROM ALL REGIONS".  DEMAND STILL GROWING.

Free markets will prevail.

Consolidation of Shale industry a natural process of Free Market economies.  Shale not dying.  Shale industry will come out stronger than ever.  OPECs worst nightmare.  

 

 

Edited August 17, 2019 by SKEP