What's going on with OIL?

[alberta_westParticipant 21]

oil is the buzz word

[MerkParticipant 50]

Wolf street.com should be a good resource for what’s really going on.

It’s all rigged, but this is the new face of war from my pov….

Wolf richter doesn’t go into that aspect just my personal opinion. He offers solid facts and numbers. I wait anxiously for his posts everyday.

In terms of financial advice, do what countries and the wealthy are doing… This means a lot of things but there has been a crazy amount of precious metals being bought by Russia and China. As well as countries trying to get gold back from the U.S. Countries are trying to get away from the dollar, and the precious metals prices are about as rigged as it gets.

[rainydaykidParticipant 42]

Problem is, a lot of medications are made with oil. I’m in college as a chemist(taking a break). Benzene is a common molecule used in medications for its ring structure, which locks molecules into shapes and provides electron stability. There are a lot of reasons it is a good starting molecule for a lot of medications, but I guarantee most people don’t know we use oil for medications. Keymaster mentioned everything is made of oil, but I doubt most people realize the true implications of this.

[iamamanParticipant 11]

rainydaykid, everyone, would you rather attempt to explain the state of the market, or would you want to trade price and make money?

News can easily be two-faced, illusive and downright staged and deceptive, and in best of cases qualitative which is useless.

Behold quantitative trading, forget news, price is the only indicator, as what matters is how price forms in the moment of now, and not the reason behind it. What matters is limiting losses during uncertainty, predicting the future is not important.

Words can lie so easily, numbers and statistics rarely lie, and even when charlatans attempt to manipulate statistics, it is easily spotted.

It aches my heart when I read explanations, as being objective is geared towards profit by way of trading.

Brothers, down with the news and such crap, discount it all, and up with risk management and conservative technical research and trading.

There is nothing called ‘Investing in stocks, bonds, currencies, … ‘, this is trading.

Forget Jim Cramer and your broker’s advice and lengthy smart sounding explanations.

Price only. Unless you want to stroke your broke ego by small talking at parties.

Blue pill: Ignorance is a bless, read as much you want into the news and analyse this and that, end up a broke chatter.

Red pill: ALARM, news is a PR scam, price is the only thing that matters. *

* When you enter a position into the market, it is worth zero, even in the minus after commissions and spreads, so if the price of a security drops it does not mean its cheap (unlike in real life trading, when you buy a car or something and it’s price deteriorate in time due to its physical erosion, exchange trading is exactly the opposite, as a position starts with no value and may only build up into a trend or not, the same applied to whole-sale to retail advantage, as in trading its the opposite, you would want to accumulate single positions into a big one which can be liquidated into profit. There is a saying that goes ‘A bad trader is like someone whom eats a lot of little grapes, but every once in a while s~~~s a water melon’, this ought to give you pause).

Trading is the opposite of life, anything Buffet says is a generalisation at best, a lie at worst, trust your self.

Regards.

[Anonymous 42]

The short and sweet version; Central bankers, Saudis, Russia; It’s all just another ball squeeze at our expense, prices have ran artificially high to bring Russia to dependency on the oil market, Russia is bucking the NWO by invading Crimea and attempting to bolster the former USSR states. NWO feels challenged and threatened… Open the Oil flood gates to cripple Russia’s new oil industry, which is in debt to the central banking industry and the IMF. It’s all about squeezing b~~~~, and yes the Canadian oil-sands are abundant, thereby acerbating the Saudi’s troubles…I could be wrong but that’s how I see it.

P.S. The keystone pipeline is a good thing for N. America and the oil refineries in Texas, they could send the tankers back to wherever they cam from, in a heartbeat. also the option of using CNG for automotive use would also affect oil prices….

[alberta_westParticipant 21]

The way I see it OIL it’s full out economic warfare between US and Russia, Sanctions and the tumbling oil price have sent the Russian economy spiralling into recession. China and Russia have embarked on a grand project—challenging the American-led international system. AS long as The US dollar remands the world reserve currency, US economy is at it’s best so to speak.

[equalism42Participant 23]

A few years ago the issue was peak oil in which the demand far exceeded the supply, and prices were set to rocket upwards. Two things have changed, electric cars have put the fear of god in OPEC thinking, and shale oil extraction break even prices have come down to about $85 a barrel.

Presently OPEC figures with the world turning away from oil they do not want to be stuck with a worthless resource, so they are pumping like crazy, no one knows what their reserves are really as they fudge the levels to pump more. Logic has it that the middle east must be starting to run dry as it gets harder to extract.

As for the price, you can expect a return to over a $100 per barrel once the middle east slows down which is only a matter of time….but what that means as far as oil company profits, may not be what you think as any lowering in demand for oil sees a contraction of the distribution chains which will never make a come back!

[Gravel PitParticipant]

equalism42 wrote:

electric cars have put the fear of god in OPEC

A lot of people don’t realize the charade that electric cars are.
There are numerous cons.

Batteries are:
HEAVY, EXPENSIVE, NEED REPLACEMENT, RANGE SUCKS, INCONVIENENT TO CHARGE

In business, after you view all Cost of Goods Sold COGS and you look at the margin net profit, you obviously pick what costs less and gets you more. When you look at ANY electric vehicle compared to any gas vehicle. The gas vs. battery net benefit is always in favor of gas by a factor of 10 to be modest. Gas is better for the environment, more convenient and cheaper for everyone.

There is a dollar value assigned to every piece of potential energy. Electric batteries have a energy value bang-for-buck. Gasoline has an energy value bang-for-buck.

When you look at how each is created from natural resources and how they are consumed and re-consumed, the bang for buck with electric is terrible! Just look at the environmental costs of batteries and the price tag at the Tesla car lot. Even if they start pumping out Model XYZ Tesla that is $30K out the door, the batteries will need replacing every year or two and that will cost $10,000 whereas a simple Chinese scooter can traverse the moon and back for less than $3000 parts, labor, oil everything. Electric simply isn’t logical in any respect compared to gasoline. 100 gas scooters = one greedy Tesla Model X. That’s one hundred people commuting to work, contributing to the economy = one smug American typing on Facebook all day. You do the math for Cost/Benefit.

I do not understand why Tesla has lasted this long. Its because idiots Elon Musk dreamers blindly buy it. Anyway, I would never invest in Eletric anything, OIL will be the king for a long time.

The only thing that could kill oil is the invention of eternal batteries that never go bad. Essentially a tiny nuclear/fission/fusion battery that is so effective, it pumps energy for 100+ years, totally clean energy. Apart from being enormously expensive and beyond our capability, technology like that is too dangerous to release to the masses. Another example of how this species institutions like medicine and technology have severely outpaced institutions like morality and reason. We can’t become a type 2 civilization harnessing great technology while religious extremists of all sorts want to keep us in Bronze age barbarism. Imagine a Jihadist buying a new Toyota Fissioncycle and turning it into a mini-Nagasaki…

Battery exchange stations, Lithium Ion, Tax payer funded….none of it will save the delusion of electric vehicles. That’s my opinion

[743 roadmasterParticipant]

Old topic, but still might have some play in it.
Louisiana the whole economy is tied to the price of crude. Dollar down and crisis, dollar up dancing in the streets. The failure to change from this one source as the major driver has killed the state over and over again. Living for the times when it goes up, in which it is quick to forget the times the price goes down.
Major changes are in the works. China has been buying land and mineral rights across the state, in which the pumping and removal are not going to be going into the state and local economy. The crude being shipped and refined out of country.
If China is doing this locally I can bet they have a play going across the shale and into the current big producers in ND.

mgtow is its own worst enemy- https://www.campusreform.org/

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