Thursday, April 5, 2012

Boone Pickens, CNBC -- $148 Brent

From message board:
Boone was just on CNBC, sees $148 Brent. Evidence of supply crunch is fact that Saudis are working on a small 1930s field, low gravity, high sulfur oil, evidence that their surplus may be smaller than thought.
Shocking! Who wudda thought? Saudi out of spare capacity?


I'm Shocked! Shocked!


CNBC video here: Becky Quick seems a bit out of her depth in this interview. Confuses WTI and Brent. Boone just explained that Brent is "global" and WTI is "local" and Becky Quick completely missed that. Then she asks a very confusing, rambling question connecting Ben Bernanke's Operation Twist, improving economy, and price of oil. Again, Boone tries to sort that out for her. Then she skips to natural gas-to-diesel, the Shell plan to build a $10 billion plant in Louisiana. This was a story in today's WSJ and I blogged about it earlier. Natural gas in US: $2.16. Overseas: $12 to $16. Then the liberal CNBC talking head really asks a crazy question: add higher federal tax at the pump to keep price of gasoline high to push Obama's agenda to "go green"? A non sequitur. Nothing like a non sequitur to stop the interview in its tracks. An Iran premium in the price of oil? Boone doesn't buy that.

2 comments:

  1. Speaking of oil prices...is there anyway you could add Bakken oil prices to your "by the numbers" list? For example, it appears that yesterday, 4/4/2012, we were at $79.50 a barrel.
    I love your site and am not complaining, I just think that us Bakken people would be interested in the prices we are getting.

    ReplyDelete
    Replies
    1. I don't want to put a "Bakken" price in like I do for a WTI price because the Bakken price varies across multiple brokers.

      Of course, that's true for WTI, also, but most folks quote the WTI price that's quoted on television crawlers.

      When you get to the link, you can see North Dakota sweet (Bakken) as well as sour (Spearfish).

      Having said all this, be advised that the prices at the link have little correlation with what you actually get paid. Most oil is sold on contracts with hedges and collars.

      But with your suggestion I have a quick way to get to other prices of crude oil.

      Delete