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):

• the deal, April 24, 2019;

Wow, I love this blog. LOL. 

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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.]

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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.

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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)