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Saudi Arabia declares oil price war on fellow OPEC (and non OPEC)members.


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48 minutes ago, nuckin_futz said:

Bourdria, stop fighting and just sit back and enjoy as they reinflate the bubble to even more glorious levels. Soon enough the virus will disipate and interest rates will be near zero everywhere and the cheap money will flow like wine.

 

Oh yeah, no one is allowed to go bankrupt either...........

 

Bailout nation takes flight

Tue 10 Mar 2020 17:58:48 GMT

 

The White House is already talking about bailing out oil companies

The Washington Post reports that White House officials are alarmed at the prospect of deeply-indebted shale companies going out of business. They are considering a bailout that includes low-interest government loans with lines of credit to major financial institutions.
 
I joked about this early today and it's already happening.
 
Banks and oil companies are already getting a bailout. The grand total on this is going to be insane.
 
Take the over:
The White House is already talking about bailing out oil companies
 
The US was running a $1 trillion deficit before the virus hit and earlier today Trump was already talking about bailing out the cruise ship industry. The record deficit in the financial crisis was $1.413 trillion.
 
The cost of the payroll tax holiday that's being floated is $300 billion.
 
*********************
 
Why would you bailout the cruise ship industry? Airlines I can see. That's an essential service but cruise lines? GTFO
 
Here's another good headline .......... "Trump tells GOP he wants the payroll tax waived through the election" <-------------- hahahahahah

It is in my nature to be nervous.

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A 'nuclear-sized event' for Alberta

 

The oil market has seen arguments like this before. In 2014, OPEC held off production cuts in order to hold onto market share in the face of a resurgent U.S. oil industry. That led oil to tumble from over $100 US a barrel to below $40 by 2015.

 

But experts say this drop is much more dramatic.

 

"This is a really big move. I was an energy trader for 15 years. I don't have all the daily moves in my head, but this would definitely be one of the biggest ones I've seen," Shaffer said.

 

Martin Pelletier, a portfolio manager with Trivest Wealth Council in Calgary, said this is a "nuclear-sized event" for an already-hurting Alberta, and if not contained, the economic malaise could spread to the rest of the country.

 

"This could be the knock-out punch for Alberta, unfortunately," Pelletier said, adding that some companies might not survive the hit.

 

"We're going to really need to see some leadership coming out of Ottawa, and I mean both the Bank of Canada and [Prime Minister Justin] Trudeau and the government … This is a crisis; this is a very serious event."

 

Pelletier said he'd like to see both a large fiscal spending program tailored to impacted provinces and an emergency rate cut.

 

Richard Masson, the chair of the World Petroleum Council, said some Canadian companies are in a better spot than their U.S. counterparts because of a pipeline crunch that has forced them to contain growth, pay down debts and look for efficiencies.

 

Still, he too thinks the federal government needs to get involved to prevent a crisis, as financing continues to dry up.

 

"We're going to need some support, or we're going to lose a lot of our native companies, and we won't be able to bounce back when prices recover," said Masson.

"One of the things they're probably going to have to look at is can they provide loans to companies to get them through?"

 

The Alberta government's recent spring budget forecasts WTI will average $58 US a barrel in the coming year, and Shaffer said this is bad news both for the economy as a whole and for the province's royalty revenues.

 

"Roughly every dollar [per barrel] is about $350 million to the government … We're talking about a $7 billion decline in revenue expectations," he said, adding that about $2 billion is made up from the improved differential and the Canadian dollar, so the net hit would be about $5 billion.

 

Some experts are predicting even lower numbers could be on the way.

 

Ali Khedery, a former Exxon adviser and now CEO of strategy firm Dragoman Ventures, tweeted "$20 oil in 2020 is coming" after news broke of Saudi Arabia's plans to hike production.

 

Shaffer said seeing such a wide difference in price forecasts after the province's budget dropped just weeks ago makes a strong case for the government to change how royalty revenues are budgeted and push for further economic diversification.

 

"If this is prolonged, you'll see continued job layoffs and effects on families. One of the really important things I'll stress is having an economy that isn't dependent on the outcome of a price war between the Saudis and the Russians …. I hope it's yet another wake-up call in terms of the efforts to diversify our economy," he said.

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1 hour ago, nuckin_futz said:

I don't recall anything in Iceland regarding a foreign housing project. Been a long time since I read up on it though. Basically the whole issue was Iceland tried to re-invent itself as a European banking capital and when a bunch of fishermen do that the end result kinda has to be pretty bad. The wave of bad debt in 07-08 swamped them and that was all she wrote.

 

There is an excellent article on the whole situation that you might enjoy. It's written by Michael Lewis (The Big Short, Moneyball, The Blind Side) so it's endlessly entertaining. I highly recommend it. Might reread it myself. :)

 

One of my favorite lines from that story ......... "You have to understand,” he told me, “Iceland is no longer a country . It is a hedge fund.”

 

https://delong.typepad.com/lewis-2009-wall-street-on-the-tundra.pdf

 

Regarding defaults. Lebanon just defaulted. But everyone kind of saw that coming and Lebanon is tiny.

You're not wrong.  They had allowed their banks to wildly over extend themselves including  opening branches in the UK.  It was one small domino effect that started with the smallest piece falling away.  The over leveraged banks just couldn't keep up to the run when it occurred.  Having the largest loan holders also sitting on the board of directors didn't help either.  There was so much shady crap going on but in the end it was one small defaulted issue that lead to the overall cascade

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4 hours ago, RowdyCanuck said:

Putin isn't crazy enough to blow one of those tankers up I hope ha.....

smart play though dropping the USA name ha 

im kinda surprised they are going to the states since trump is best friend with Putin , oops I mean rumoured friends ha

Easy.... just say the tankers are carrying the corona virus.

Or.... just start egging on the Iranians to close the Straight of Hormuz.

Maybe even having a few dozen rockets strike the refineries and stuff in Saudi Arabia "from Yemen".

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2 hours ago, Lancaster said:

Easy.... just say the tankers are carrying the corona virus.

Or.... just start egging on the Iranians to close the Straight of Hormuz.

Maybe even having a few dozen rockets strike the refineries and stuff in Saudi Arabia "from Yemen".

Ha that sounds right up trumps ally ha fake news lol

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Saudi Aramco receives directive to increase maximum sustainable capacity to 13 mil bpd

Wed 11 Mar 2020 06:58:29 GMT

 

That is up from 12 mil bpd before this

 

The firm says they are to raise production capacity to 13 mil bpd and will exert 'maximum efforts' to implement the directive from the Ministry of Energy as soon as possible.
 
Oil has already eased from earlier gains above $36 to $34.50 currently and the latest developments here won't provide much added comfort on the day.
 
....................
 

US crude oil inventories show a build of 7.664M vs 1.7M estimate

 

Inventories get reported every Wednesday so this isn't a real big deal. But it is kinda sad that before the market gets flooded with oil, it's already flooded with oil.

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One major winner in all this:  China

One major loser in all this:  Venezuela

 

China lent lots of money to Venezuela and the repayment is with oil.  Now that oil prices has tanked even more.... expect the oil rich nation to suffer further gas/oil shortage.  

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3 minutes ago, Lancaster said:

One major winner in all this:  China

One major loser in all this:  Venezuela

 

China lent lots of money to Venezuela and the repayment is with oil.  Now that oil prices has tanked even more.... expect the oil rich nation to suffer further gas/oil shortage.  

India is probably loving this too as they are a large importer of oil.

 

Venezuela has the largest proven oil reserves on the planet, even larger than Saudi Arabia. Such unbelievable mismanagement there.

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1 hour ago, Lancaster said:

One major winner in all this:  China

One major loser in all this:  Venezuela

 

China lent lots of money to Venezuela and the repayment is with oil.  Now that oil prices has tanked even more.... expect the oil rich nation to suffer further gas/oil shortage.  

They will likely be absolutely bankrupt.

1 hour ago, nuckin_futz said:

India is probably loving this too as they are a large importer of oil.

 

Venezuela has the largest proven oil reserves on the planet, even larger than Saudi Arabia. Such unbelievable mismanagement there.

Hmm I wonder what the reasoning could be..

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3 hours ago, nuckin_futz said:

Saudi Aramco receives directive to increase maximum sustainable capacity to 13 mil bpd

Wed 11 Mar 2020 06:58:29 GMT

 

That is up from 12 mil bpd before this

 

The firm says they are to raise production capacity to 13 mil bpd and will exert 'maximum efforts' to implement the directive from the Ministry of Energy as soon as possible.
 
Oil has already eased from earlier gains above $36 to $34.50 currently and the latest developments here won't provide much added comfort on the day.
 
....................
 

US crude oil inventories show a build of 7.664M vs 1.7M estimate

 

Inventories get reported every Wednesday so this isn't a real big deal. But it is kinda sad that before the market gets flooded with oil, it's already flooded with oil.

Not sure if they have the capacity for 13 million. More important what does this do to countries so dependent on oil revenue? Iran, Iraq, Venezuela, Nigeria, could go on, Libya. Extreme instability. Throw the virus on top. Iran has already blamed the virus on the USA and the Saudis. Another missle attack? 

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15 minutes ago, Boudrias said:

Not sure if they have the capacity for 13 million. More important what does this do to countries so dependent on oil revenue? Iran, Iraq, Venezuela, Nigeria, could go on, Libya. Extreme instability. Throw the virus on top. Iran has already blamed the virus on the USA and the Saudis. Another missle attack? 

Ask and ye shall receive.

 

10 rockets fall inside base housing US personnel

Wed 11 Mar 2020 17:38:51 GMT

 

Let's toss a war onto this bonfire

The Iraqi army says 10 katyusha rockets struck Camp Taji. It's located 27km north of Baghdad. It houses US forces and members of the Iraqi Army and Iraqi National Guard.
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4 hours ago, nuckin_futz said:

Ask and ye shall receive.

 

10 rockets fall inside base housing US personnel

Wed 11 Mar 2020 17:38:51 GMT

 

Let's toss a war onto this bonfire

The Iraqi army says 10 katyusha rockets struck Camp Taji. It's located 27km north of Baghdad. It houses US forces and members of the Iraqi Army and Iraqi National Guard.

Jebus :picard:

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Jerk 1: I'm getting bored

Jerk 2: Me too

Jerk 1: This coronavirus will get stale soon

Jerk 2: I got an idea. Let's really &^@# with the world and tank oil!

Jerk 1: Hell's yeah!

 

Footage of discussion

 

Spoiler

Image result for putin crown prince hi five gif

 

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19 minutes ago, aGENT said:

Jebus :picard:

More on the rocket attack in Iraq - death toll

Wed 11 Mar 2020 20:39:23 GMT

 

Updating on the rocket attack - two US and one UK service members said to be dead

  • approximately 12 others injured
Info via Reuters, citing two unnamed US officials:
speaking on the condition of anonymity
stressed that this was initial information and could change.
 
15 small rockets hit Iraq's Taji military camp north of Baghdad
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