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Oil Prices may be in for another major drop

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NH Apache

Banned
Speculation is getting a bit crazy on oil price.

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https://twitter.com/RaoulGMI

The US has upped production, adding 29 rigs last week, the highest increase since 2013:


https://twitter.com/ManuOrtizOlave/status/823555996345843712

And Business Times reports that US production reports:

US oil production has risen more than six per cent since mid-2016, although it remains seven per cent below a historic high in 2015. It is back to levels of late 2014, when strong US crude output contributed to a crash in oil prices.

http://www.businesstimes.com.sg/ene...ns-of-us-output-rise-overshadow-opec-led-cuts

Reuters article regarding the long:
http://www.reuters.com/article/us-oil-hedgefunds-kemp-idUSKBN1571ZZ

And in other news, Russia now supplies China with more oil than Saudi Arabia:

https://www.bloomberg.com/news/arti...n-of-top-china-oil-supplier-from-saudi-arabia



US has increased production hoping that market comes with. Speculation is so high right now that the short is now looking attractive for investors.

On the good side, Equatorial Guinea announced that it will be joining OPEC and vowing production cuts. OPEC has met it's target on production cuts, but it is overshadowed by the US increase.
 
This is only going to crash harder when Trump removes further regulations, allowing for even more opportunities to open up new wells in previously restricted areas. I'm not sure if that's a good or bad thing in the short-term or long-term, but I'm pretty confident it is what will happen.

RIP Canada and the Middle East. USA coming for your economy inch by inch.
 

Ether_Snake

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There was an article on Bloomberg last week that said Saudi Arabia will end the deal it signed recently, that it just wanted to get rid of its oversupply and it will go back to full production in a few months.

Called it, prices' new normal is in the 30s.
 

Goro Majima

Kitty Genovese Member
Thank god we moved out of Houston and were fortunate enough for the relocation company to buy our house so we didn't have to sell it.

"Houston has finally separated itself from oil and gas" my ass. If this price sustains itself again, I'll probably be seeing more friends laid off.
 

br3wnor

Member
As someone with a 550 gallon oil tank for my old, heat leaking ass house, this is good news. Hope to winterize my house better this year so I can protect against an oil price increase in future winters, but it's crazy how much oil I burn heating this place.
 

Suikoguy

I whinny my fervor lowly, for his length is not as great as those of the Hylian war stallions
So, could someone explain what caused the price to go up before this seemingly new normal of 30ish dollars?
 

NH Apache

Banned
Thank god we moved out of Houston and were fortunate enough for the relocation company to buy our house so we didn't have to sell it.

"Houston has finally separated itself from oil and gas" my ass. If this price sustains itself again, I'll probably be seeing more friends laid off.

I work for a Houston based O&G company. President is coming over to our office tomorrow "to say hi."

RIP
 
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