cheap oil coming!

lucky john · 10-10-2014 01:55PM

euroboom13 wrote: »

$88 The world changing before our eyes.

Enjoy the show

Oil is a big driver of European ( and world) inflation/deflation so the knock on effect there will be worth watching. Oil demand is also a forward indicator of economic growth. Not looking so rosie on that front either.

ixus · 14-10-2014 11:31AM

euroboom13 wrote: »

I believe oil prices are going to drop from $104 to close to $80.I have this view because i believe it will help sqeeze out the middle east power, in the world energy markets.I also believe that cheap oil will create a boom in europe that will only be suppressed by high interest rates.

Fantastic price call, if for the wrong reasons. Saudi squeeze of the rest of the market and European growth issues.

euroboom13 · 14-10-2014 05:30PM

ixus wrote: »

Fantastic price call, if for the wrong reasons. Saudi squeeze of the rest of the market and European growth issues.

Think I will be right on European growth figures and rate hikes within next 6 months.

USA have increased market share and put the middle east under pressure to lower production to stabilise price drop.

Interesting times

The Cuban · 14-10-2014 07:15PM

Similarities to the Oil price slump of the 1980`s, the only difference I see is the bulk of the US oil production is now coming from the shale Oil boom. A price drop to $80 will really hurt their producers along with a hell of a lot of Aim E&P Co.s who claim to have all these millions of barrels of Oil (most of which is shale oil as-well or else wax type Oil).
The Saudis have come out and said that they are not going to cut production to support the Oil price instead they are going to fight for market share. their Oil costs a hell of a lot less to produce than all others.
I see a right bloodbath coming the way of those Aim Co.s

homingbird · 14-10-2014 07:21PM

Its tax that makes oil dear the government take 1 euro in tax for every liter you buy so dont blame the oil company's.

euroboom13 · 14-10-2014 08:06PM

The Cuban wrote: »

Similarities to the Oil price slump of the 1980`s, the only difference I see is the bulk of the US oil production is now coming from the shale Oil boom. A price drop to $80 will really hurt their producers along with a hell of a lot of Aim E&P Co.s who claim to have all these millions of barrels of Oil (most of which is shale oil as-well or else wax type Oil).
The Saudis have come out and said that they are not going to cut production to support the Oil price instead they are going to fight for market share. their Oil costs a hell of a lot less to produce than all others.
I see a right bloodbath coming the way of those Aim Co.s

Price war on oil, could really change the market place(currencies) very quickly ,the world we live in is changing.

ixus · 14-10-2014 08:15PM

euroboom13 wrote: »

Price war on oil, could really change the market place(currencies) very quickly ,the world we live in is changing.

Iran and Kuwait have come out and said not bothered by the price.

The view is this is a US Saudi deal. US goes into Syria in return for Saudi hurting Russia with cheap oil.

US companies will lobby harder for right to export crude.

euroboom13 · 14-10-2014 08:23PM

ixus wrote: »

Iran and Kuwait have come out and said not bothered by the price.

The view is this is a US Saudi deal. US goes into Syria in return for Saudi hurting Russia with cheap oil.

US companies will lobby harder for right to export crude.

The impact of a 20% change in oil ,if it holds, will test everywhere that's not prepared. This has been coming for a long time (and may go further south)

An education in itself, watching with interest.

jank · 15-10-2014 01:32PM

Did you do a trade on the price movement?
Am watching a few companies namely BP and COP to see how much their share price will tank. May jump in then.

euroboom13 · 15-10-2014 05:33PM

jank wrote: »

Did you do a trade on the price movement?
Am watching a few companies namely BP and COP to see how much their share price will tank. May jump in then.

its a bit too slow for me as a long play and with little return.I also think prices will stay low and might go lower in the medium to long term, so I wont be putting money in any oil base company's just yet.

Should be an uplift in all equities and especially airlines/transport/banks.
Only an opinion .

ixus · 15-10-2014 05:47PM

airlines dealing with ebola fallout

euroboom13 · 15-10-2014 05:49PM

Cheap oil will outlive Ebola, Ebola might help buying in price.

ixus · 15-10-2014 05:54PM

Free to read: Who are the winners and losers from the oil price plunge

euroboom13 · 15-10-2014 06:25PM

http://www.wtrg.com/oil_graphs/oilprice1869.gif

Not to hard to work out an average line on this graph. If oil prices fell to 100yr average who knows what the world would look like in a few years?

Who would guessed that average oil prices are around $40?

For ever odd · 04-01-2015 12:50PM

OK going left field here.
Has Russia got capacity to raise it's oil output?
If it has do you think they would flood the market with more cheap oil.
I know they would be shooting themselves in the foot,but I wouldn't put anything past Putin. It would cause more pain to USA and at this stage have Russia anything left to loose?

cheap oil coming!

Comments