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Old 01-12-2016, 03:33 PM   #1
A.T. Hagan
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Default Oil below $30 a barrel

As per the CNN Breaking News email that just came in.

Quote:
Oil plummeted below $30 a barrel today for the first time since December 2003.

The latest wave of selling leaves crude oil down 19% this year alone. It represents an incredible 72% plunge from crude's June 2014 peak of almost $108.
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Old 01-12-2016, 03:56 PM   #2
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I just got word that Arch coal, the 2nd largest coal company in NAM, is filing for bankruptcy, and that Peabody (the largest private-sector coal company in the world) is not far behind.

It's a brutal game that OPEC is playing.
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Old 01-12-2016, 04:22 PM   #3
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I believe it's the through-the-floor price of natural gas that is doing in the coal companies.
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Old 01-12-2016, 04:30 PM   #4
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It's all intertwined.

I think what OPEC is doing is in response to the changes fracking for gas and oil have brought about. Everyone else is just collateral damage.
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Old 01-12-2016, 05:00 PM   #5
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I saw this statement from the Nigerian Oil Minister come across the news feed about 3am.
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Nigeria's oil minister says couple of OPEC members have requested to hold emergency meeting, no word on circumstances - @Reuters
But gosh, what a surprise... there's really no need for a meeting after all.

As oil wobbles, OPEC split over emergency meeting
Quote:
The United Arab Emirates moved to quash talk of a potential emergency meeting of the Organization of the Petroleum Exporting Countries (OPEC) after Nigeria’s oil minister said on Tuesday a “couple” of members had requested a gathering.

...Such market conditions supported an emergency meeting to review whether OPEC should change strategy, Nigerian Minister of State for Petroleum Resources Emmanuel Ibe Kachikwu told reporters on the sidelines of an energy conference in Abu Dhabi.

However, UAE Energy Minister Suhail bin Mohammed al-Mazroui later told the same conference the current OPEC strategy was working, adding that time was needed to allow this to happen — perhaps between one and 1-1/2 years.

“I’m not convinced OPEC alone can change or can solely unilaterally change this strategy just because we have seen a low in the market,” Mazroui said.

Mazroui added that while the first half of 2016 would be “tough” for the oil market, there would be a gradual recovery later in the year, aided by an expected drop in non-OPEC production.

The Nigerian minister did not specify which OPEC members wanting a meeting and said any such gathering would be in February or March. OPEC’s next scheduled meeting is not until June 2.

But two OPEC delegates from outside the Gulf were sceptical an emergency conference would take place. “There won’t be any meeting,” said one of the OPEC delegates from an African OPEC country.
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Old 01-12-2016, 06:20 PM   #6
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I just read a prediction that it will drop to $16 a barrel this year.
http://www.smh.com.au/business/comme...12-gm4jwn.html
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Old 01-12-2016, 08:11 PM   #7
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I'm pretty sure in 1 to 1 1/2 years some event(s) will take the price of oil from OPEC's control.

The little ones are ticking along, adding up.
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Old 01-13-2016, 04:12 PM   #8
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Oil prices back near record low as market glut rises to level not seen in 80 years
Quote:
WTI back at $30.18 a barrel and Brent Crude down 0.8 per cent at $30.60
Oil prices were $114 a barrel in June 2014 but have since fallen off a cliff
http://www.thisismoney.co.uk/money/m...-80-years.html

So, how much of their financial reserves are the Saudis and Gulf states willing to burn through before they finally say "enough!"?
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Old 01-13-2016, 06:00 PM   #9
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The Saudis' production costs are way below $30/bbl.
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Old 02-06-2016, 01:10 AM   #10
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BHP Taking $7.2B Impairment Against U.S. Unconventional Leaseholds

January 15, 2016
Carolyn Davis

BHP Billiton Ltd., one of the largest foreign investors in the U.S. onshore, said Friday it would take a $7.2 billion pre-tax impairment charge against the carrying value of its unconventional leaseholds in the Permian Basin and Eagle Ford, Haynesville and Fayetteville shales. Read More
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