T’was the Last Energy Report before Christmas and there is a big oil glut. And no one is bullish as OPEC refuses to cut.
Shale oil producers are deep in despair as the cartel crashes prices to maintain their share.
The drillers drilled into limestone shale beds, while visions of high prices danced in their heads.
Yet instead of going higher, prices collapsed! It went even lower with no cold on the map.
Then all of a sudden global stocks were in taters, the rig counts were slashed as prices were battered.
Oil stock downgrades came in a flash, as they worried how low oil prices might crash.
What OPEC was doing was becoming increasingly clear, they abandoned their quota to create market fear.
By driving down prices so lively and quick, it froze new oil projects as prices fell like a brick.
More rabid than vultures the cartel’s members came as they dumped oil on the market and I will call them by name!
Now Iran! Now Iraq! Now Kuwait and Algeria! Yes, Venezuela! And UAE! And Qatar and Nigeria! Libya and Ecuador have their backs to a wall,
but Saudi Arabia still wants our production to fall. So pump away, pump away, pump away way all!
There is no quota! No need to comply and with sanctions lifted, Iran will just add to supply.
Up to the tank-tops the barrels accrue, and there are fears that storage might overflow too.
And then in a twinkling, supplies go up through the roof.
And for U.S. shale producers, it’s the moment of truth.
Down with production unless prices rebound or they may run their companies right into the ground.
And no one is dressed in fur from their head to their foot, as warm as it is, heating demand is kaput.
The traders wonder if oil can ever come back as it seems that somehow things have gone way off the track.
For oil producers things aren’t so merry and these falling prices make the future real scary.
They are bleeding cash and plenty of dough and it’s clear that their companies will have more trouble in tow.
For the oil investors this is a kick in the teeth and the banks may pull capital as they suspend their belief. Oil has to about face or it will be like a kick in the belly and at then, at least, you might want some petroleum jelly.
Gas prices are down at the pump, you can check for yourself. I want to drive even more in spite of myself.
You should give it a try it won’t cost much bread, just fill up you tank. You have nothing to dread.
You can drive just for fun or straight to your work. You can drive off slowly or drive like a jerk.
. It has been awhile since gas has been so low and enjoy it now because you know how it goes.
Prices can spring back as quick as a whistle, and they can shoot up like a patriot missile.
Remember our soldiers in lands far away and remember to pray for them each passing day.
It is for our freedom they put up this incredible fight. So to them and all of you, Merry Christmas and Good Night.
API shocks with a 3.6million barrel drawdown.
OPEC in its annual report seems to suggest that the output you are seeing today from them is going to be it! It also is acknowledging that it will lose market share to Non Opec pruner. Saudis announce budget cuts and Shell (L:RDSa) more Cap x cuts! the bottom is getting closer!