Tuesday, March 10, 2020

The Market Meltdown - Oil Crash Of 2020

This already has its own tag, "Meltdown_2020."

I'm waiting for the wiki entry.

This is absolutely tectonic. The Russia-Saudi spat.

One ticker symbol: OXY. I'll get back to this later. If I forget, hint, Getty, Texaco.

Links (more to follow when I get caught up):
Wow, I love this blog. LOL. 

*****************************
Scrolling Through Twitter 

Scrolling through twitter this morning, these are the takeaways:
  • the Saudi-Russia spat is the biggest head fake in fifty years of following oil
    • we just don't know which way the legs will go
  • it appears Russia has already blinked
  • Saudi Arabia says it will immediately deliver 12.5 million bopd 
    • we have heard that same number so often over the years; 12.5 million bopd
    • analysts are falling for that ... that Saudi will actually do that ... deliver 12.5 million bopd to its customers
    • note to analysts: the customers' oil tanks are full; where are they going to put all this oil?
    • Southwest Airlines needs to start building more storage tanks -- ASAP
    • Saudi is producing about 9.5 million bopd
    • they would have to empty their own storage tanks to deliver that much oil
    • on top of that, this goes against Prince MBS's own strategy -- giving away the kingdom's wealth
    • this is insanity: giving away your lifeblood at $30/bbl
  • so, we'll see
From my perspective, the global oil analysts really, really missed this one.

Abeer Abu Omar over at Bloomberg is reporting the obvious, but at least it's a start.

Break-even point: I saw it earlier this morning; looking for the link now, but confirms what I said yesterday -- Saudi Arabia's break-even price is $83. I assume that's "their" price which pretty much reflects Brent. Saudi is in a fight for its very survival, but like the US, Saudi doesn't have a revenue problem, it has a spending problem. [Later, here it is, I found it ... wow, what a memory ... yes, according to S&P Global Platts the break-even price for Saudi Arabia is $83 for the Saudis, $51/Brent bbl for the Russians.]

***************************************
The Article To Read Today

This article might take you 45 seconds to read. Re-posting:
I haven't lost a nickel in the market. Link here.
**********************************
Does This Not Sound Like Janis Joplin?

Almost Persuaded, Etta James


Listening to the Etta James catalogue:
  • one can immediately tell what she recorded in Muscle Shoals;
  • there are moments when the Muscle Shoals sound almost pushes one into country music
  • or maybe some country singers were influenced more by the Muscle Shoals sound than they let on
  • I can never forget the reader who introduced me to Muscle Shoals; thank you so much; I hope you are still reading the blog -- not because I think you need to read the blog, but because I want to know that you are still alive, kicking, and enjoying music
  • whatever happened to Joss Stone (my brother, Craig, introduced met to Joss Stone)

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.