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14:49
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Originally posted by Retired123:
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I think SK is making some good points in my understanding the macros of the oil market. IMO OPEC recognises it's got an awful lot of oil to sell in a world slowly but surely moving away from carbon based energy and products. It has shown it can turn the tap on and off to reflect overall demand and has done it pretty well during COVID. OPEC has done a lot of the heavy lifting during a period of a rough 20%+ decline in demand. The improving POO is also a reflection of this. I think OPEC has shown the potential to turn the taps on to higher volume reasonably quickly to keep the POO below say $60 and try deter new development and keep more marginal shale US from starting up again in earnest. It's power should never be underestimate IMO.long term concern is ultra low cost ME oilers go rogue and turn the taps on with the POO declining to crush competition so they can sell their remaining oil. It's worth nothing it's worth nothing in the ground with low demand. They would still sell their oil at a good profit however the fiscal implications to their economies would be front of mind.
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This doesn't make any sense.long term concern is ultra low cost ME oilers go rogue and turn the taps on with the POO declining to crush competition so they can sell their remaining oil.
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