Good Morning Mermaids , Oil news this morning , as we know a huge amount of oil has vanished from the market and as we are now approaching US driving season as well as northern hemisphere peak consumption it is expected to see a rebalance of the o.p in the third to fourth quarter , this we do know . Behind the scenes Kuwait has now engaged an American broker to raise capitol to refurbish their diminishing reserves , Iraq cannot pay their service contractors and have offered shares in developing new oil fields ( no takers ) Half of the Worlds debt is now being issued to Arab oil producers , the Saudi's have proposed to pay their oil services contractors with IOU"S . It appears the old oil the Arabs have been using to fund this folly is now fast depleting and they need to develop new oil to keep up supply , but giant US contractors such as Schlumberber , Halliburton and Baker Hughes all are demanding new contracts at much higher rates . The present conditions are unsatisfactory and are at risk of damaging their own supply chains . It appears that there are many factors now coming together to force the Arabs to reduce supply , raise the o.p. to fund the new oil required to cover the depleted oil which has been running at capacity for years . The biggest obstacle appears to be their own stupidity and stubbornness , but the lack of money will cure that sooner than later......Cheers
MRM Price at posting:
42.0¢ Sentiment: Hold Disclosure: Held
