LL Not sure if you were there at the time, I think you were when the following was discus t at the AGM
The reason for the fall in oil price is due to the USA and OPEC countries trying to bring Russia into line RE their dealings with the Ukrainian situation. However OPEC can only continue with this for a maximum of three months. The USA can go on much much longer.
So unless Russia toes the line in that time it will all have been in vane because the amount of oil being produced wasn't cut.
This is a catch 22 situation. If the amount being produced had been cut Russia would have been able to sell more so the demand would still be there for Russia to make more money.
So the price was dropped but production raised so there is now a surplus of cheap oil that is being stockpiled.
Production has to be cut with the lower price but this can only be done for a short period or the OPEC countries will go out backwards in a hurry.
So if Russia can hold out the Oil producers will be the looser, which will be a big, big win for Russia who are very good with their backs to the wall. http://www.noadvertising.com.au//images/emoticons/icon_rolleyes.gif http://www.noadvertising.com.au//images/emoticons/icon_rolleyes.gif http://www.noadvertising.com.au//images/emoticons/icon_rolleyes.gif http://www.noadvertising.com.au//images/emoticons/icon_rolleyes.gif http://www.noadvertising.com.au//images/emoticons/icon_rolleyes.gif http://www.noadvertising.com.au//images/emoticons/icon_rolleyes.gif http://www.noadvertising.com.au//images/emoticons/icon_rolleyes.gif http://www.noadvertising.com.au//images/emoticons/icon_rolleyes.gif
LNC Price at posting:
99.5¢ Sentiment: Buy Disclosure: Held
