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Dirty_habiT

Oil trade halted this morning by NYSE.

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https://techcrunch.com/2020/03/09/us-stocks-tank-after-global-equities-retreat-oil-collapses-bond-yields-fall-and-cryptos-drop/

 

"Trading halted on Wall Street for 15 min as first circuit breaker is triggered following 7% drop. Next circuit breaker goes into effect at a 13% drop, followed by 20%."

 

Price per barrel is expected to drop to less than $20.

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Been seeing news about it, but don’t know enough in the subject to understand the implications. Assume it’ll buoy the economy short term but have a huge negative effect farther out. 
 

Anyone here qualified to explain this?

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If there’s anything my years of drunken rambling have taught me is it’s i’m qualified to speak on anything. 


From what i‘ve gathered listening to different podcasts and reading a handful of articles.. 

 

Saudi Arabia and Russia are in a pissing match over oil pricing. Due to lack of demand at the moment the price is falling, Saudi wanted to put a floor on the price and Russia told them to get fucked. So Saudi told Russia to pound sand and started busting out oil unnecessarily. The US industry is going to feel the brunt of it depending on how long Russia and Saudi Arabia choose to have their dicks out. Good for consumers, bad for oil companies. I heard one person say it could result in years long consequences.
 

Tune in next week for A. Saint’s Economic Out-His-Ass Talk exclusively here on 12oz radio. 

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it’s obviously much more complex but i think abrasive outlined the main reason. i’ve been reading up about it too and it seems to be that 

 

OPEC+ couldn’t agree so the saudis are strong arming people to come back to the table 

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Isn’t this why we acquired Alaska and have been waiting to tap the reserves?

 

seems like now may be the time. Especially with the death of the combustion engine in autos on the horizon

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20 minutes ago, KILZ FILLZ said:

Isn’t this why we acquired Alaska and have been waiting to tap the reserves?

 

seems like now may be the time. Especially with the death of the combustion engine in autos on the horizon

 I don't think we're going to see the "death of the ICE" in our lifetime.... for many reasons.

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29 minutes ago, KILZ FILLZ said:

Isn’t this why we acquired Alaska and have been waiting to tap the reserves?

 

seems like now may be the time. Especially with the death of the combustion engine in autos on the horizon

Na, we sold it to the Americans to protect themselves/us from Ze RuSSiAnS

 

Also, you don't need more oil, you got plenty. This is counter intuitive but the issue isn't that there is a lack of oil, it's the opposite. There's too much and the price drop will hurt the smaller producers/companies.

 

AFAIK OPEC limits the production so the market doesn't get flooded

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Can anyone shed light on the dollar being the world trade currency and tied to oil production what this might mean to the value of the dollar?

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4 minutes ago, mr.yuck said:

Can anyone shed light on the dollar being the world trade currency and tied to oil production what this might mean to the value of the dollar?

@Mercermay have some knowledge about this but he's been MIA lately

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2 hours ago, Kults said:

Na, we sold it to the Americans to protect themselves/us from Ze RuSSiAnS

 

Also, you don't need more oil, you got plenty. This is counter intuitive but the issue isn't that there is a lack of oil, it's the opposite. There's too much and the price drop will hurt the smaller producers/companies.

 

AFAIK OPEC limits the production so the market doesn't get flooded

My understanding is that we do indeed have a shit ton of oil, but the cost to frack and extract is far more costly than pumping so it's only cost effective when crude sits at $60+ a barrel.

 

In regards to this situation, I'm under the impression that Russia is doing it to purposely fuck with the USA. I'm unsure if that's true, let alone the consequences of it, but my thought is this will be a short term buoy of the economy since virtually everything is tied to transportation and right now what makes things move is the cheapest its been in decades. Perhaps a good thing to help smooth out the pain of the COVID-19 shit and perhaps another way to help lock down Trumps re-election since there's virtually little else that can derail it at this point.

 

But I really would like to understand the implications beyond generalizations. No doubt theres a lot of huge money people out there that will be suffering as a result and shit seems to trickle down so can we accurately predict a lot of pain in the future as a result? How will that pain manifest and how will the existing situation add to this new situation?

 

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50 minutes ago, Kults said:

@Mercermay have some knowledge about this but he's been MIA lately

He'll be back. He's in the middle of some big real life stuff that has him bogged down a bit. We talk regularly.

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Not sure if this is worth a new thread or not, but the dominoes keep falling for Senators who sold off stock with inside knowledge that market volatility was coming.

 

BREAK OUT THE GUILLOTINES

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13 hours ago, metronome said:

Not sure if this is worth a new thread or not, but the dominoes keep falling for Senators who sold off stock with inside knowledge that market volatility was coming.

 

BREAK OUT THE GUILLOTINES

I just caught the tail end of Trump talking about this in the press conference, whts the good word? 

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Yep I saw the news on that too.  A few Republican senators are guilty here.... Tucker grilled one of them pretty good on his show.  They deserve some sort of stiff punishment, isn't that the same thing as "insider trading"?

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Posted (edited)
On 3/20/2020 at 11:02 AM, abrasivesaint said:

I just caught the tail end of Trump talking about this in the press conference, whts the good word? 

More or less several R senators used sensitive information they were given during a covid briefing back in January to leverage strong positions on the stock market and made themselves millions of dollars at the expense of public health.  Also one of them is married to the chairman of the NYSE.

 

edit:  It would be interesting to see if any of these people's biggest donors benefited... 

Edited by metronome
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