Whether Saudi Arabia will boost production to 11 million bpd or 12 million bpd inside a month remains to be seen but the world is definitely heading into a deeper glut: Russia will start pumping more from April, too.
“As from 1 April we are starting to work without minding the quotas or reductions which were in place earlier,” Energy Minister Alexander Novak said on Friday, adding “but this does not mean that each country would not monitor and analyze market developments.”
At the time of writing, Brent crude was trading at $37.63 a barrel, with WTI at $34.25 a barrel, both up by around 10 percent from yesterday’s close on the news of more economic stimulus and the decline in the number of new Covid-19 cases in China.
Incredibly fascinating dynamic happening here. What is the final goal?
Number 1 is clearly to crush US oil producers.
Number 2. Increase demand? Nothing increases demand like low prices. Sub $2 a gallon gas, will encourage people to buy even more SUV's and large pickup trucks. Electric car/truck manufacturers...or those trying to be, are probably going to feel some negative affects from this.
Number 3? refer to number 1.
Crude sub $20 is a buy. That is my recommendation.
Great thoughts Jim!
The sooner we peak with our numbers, the sooner we can get back to normal.........but that ain't happenin for quite awhile with stories like this dominating:
ttps://www.cnn.com/world/live-news/coronavirus-outbreak-03-11-20-intl-hnk/h_b3e16cba1f43e48c16720e47ccd222f0
Coronavirus is "almost a perfect killing machine" for elderly patients, US nursing home association head says
https://oilprice.com/Energy/Crude-Oil/Can-US-Shale-Survive-The-Oil-Price-War.html