my 2 bob: middle est over production is suppressing oil prices...

First 5 Last

Share
Profile

Follow
brushup

2,850 Posts.

176

08/08/16

12:05

Post #: 18467231
Share

Originally posted by bruutz82 ↑

I think government policy was more to blame for the US bubble more so than Allen Greenspan. Greenspan was partly right about leaving pricing up to market forces to decide when a correction naturally occurs. However, I think Greenspan underestimated the effects US Government policy meddling had on manipulating house prices and how it was inhibiting natural market corrections pre 2007.

Saying that - god help Australia if we ever run out of leavers to pull and push in relation to housing policy/ negative gearing etc. One almighty crash could ensue here too.

Anyway back to oil.

Thanks for adding your points cmonaussie- you are right - Macro oil is far from rosy despite the recent move to $40. However, I think as the bearish macro oil conditions start to end (if they do) that will feed down into more bullishness towards shale businesses even if oil is not yet at a price where shale oil is profitable.

Think of it like anticipation before an announcement - the bets are placed based on research and reasonable assumptions. Consequently, the SP starts to go up before proven profitability is actually confirmed for the company. A bit like futures so to speak.

I believe AKK's SP will go up before it has even hit profitability per oil barrel as long as confidence builds and bullishness on macro oil conditions continue to occur.

In other words: I take a bit of risk, if I profit, I sell and cash in and then the next guy takes the next lot of risk potentially profits and then passes the risk on to person number three.

Expand

my 2 bob: middle est over production is suppressing oil prices not much joy until they agree to reduce production

AKK Price at posting: 0.6¢ Sentiment: Hold Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

AII

Inside the depths of Panasqueira: A legacy carved in rock

HotCopper Highlights: RIP to Botanix (for now); Droneshield new ATH; Trigg mystery halt

Listen: HotCopper Wire Podcast 017 – RBA holds the toppings

LIS

'Opens doors': Li-S Energy the first Oz company to produce lithium metal foils

VMM

'Big tick': Viridis positions for global leadership with Colossus pre-feasibility study

ILU

Rare earths stocks surge as Pentagon buys big stake in US REE miner

AAU

Antilles brings Chinese ally on board to keep Neuva Sabana work chugging on

Week 28 Wrap: Tariff chaos back for some reason; CBA holds strong

CWX

Carawine faces Fraser Range JV collapse as IGO moves to scrap partnership

Trump just dropped a 200% tariff bomb. Here's how to cash in

First 5 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

my 2 bob: middle est over production is suppressing oil prices...

Top Stories

Inside the depths of Panasqueira: A legacy carved in rock

HotCopper Highlights: RIP to Botanix (for now); Droneshield new ATH; Trigg mystery halt

Listen: HotCopper Wire Podcast 017 – RBA holds the toppings

'Opens doors': Li-S Energy the first Oz company to produce lithium metal foils

'Big tick': Viridis positions for global leadership with Colossus pre-feasibility study

Rare earths stocks surge as Pentagon buys big stake in US REE miner

Antilles brings Chinese ally on board to keep Neuva Sabana work chugging on

Week 28 Wrap: Tariff chaos back for some reason; CBA holds strong

Carawine faces Fraser Range JV collapse as IGO moves to scrap partnership

Trump just dropped a 200% tariff bomb. Here's how to cash in

Featured News