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Oil Price Slide Gaining Momentum

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Sub $70 today. Rouble back to levels last seen during the '98 Russian crisis. Stocks in airlines 'soaring', while anything to do with mining and oil taking a hammering...

US wants to punish Russia, OPEC wants to price out US shale producers... Or is all this a consequence of the US taper?

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The Saudis' $650bn dollar reserves vs. the shalers' one-year derivatives trades.

Game over.

common theme between enemies?

ah yes...banks.

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George Godber, a fund manager at Miton, is keeping a close eye on high-yielding US corporate debt - a market that is the same size as the FTSE 100. That's because a significant chunk of that market is accounted for by US shale oil and gas producers. Falling oil prices are threatening firms in that business and Mr Godper says we could see a wave of bankruptcies.

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George Godber, a fund manager at Miton, is keeping a close eye on high-yielding US corporate debt - a market that is the same size as the FTSE 100. That's because a significant chunk of that market is accounted for by US shale oil and gas producers. Falling oil prices are threatening firms in that business and Mr Godper says we could see a wave of bankruptcies.

I think this chap was on the radio this morning - said that this high-yielding debt could be like US mortgage subprime.

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£1.12 a liter for diesel yesterday ( with tesco discount ).

F**kijng expensive still.

When will we see these price drops passed onto the consumer for every other product ?

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I remember diesel costing £1 a litre back in c. 2006, so to go to £1.22 a litre in 8 years is about 2.5% compounded interest. Thats not bad and close to going below 2% with the occasional discount.

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£1.12 a liter for diesel yesterday ( with tesco discount ).

F**kijng expensive still.

When will we see these price drops passed onto the consumer for every other product ?

Half the price is tax, then there are delivery and refining costs that probably haven't changed that much.

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Sub $70 today. Rouble back to levels last seen during the '98 Russian crisis. Stocks in airlines 'soaring', while anything to do with mining and oil taking a hammering...

US wants to punish Russia, OPEC wants to price out US shale producers... Or is all this a consequence of the US taper?

What a horror. Prices falling. Economy going up. Better life for all of us ...

Let's now consider a mental exercise: are high house prices good or bad ???

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Iraq's oil minister says Islamic State no longer a threat to Baghdad's 'black gold'

30th Nov 2014

http://www.telegraph.co.uk/news/worldnews/islamic-state/11263581/Iraqs-oil-minister-says-Islamic-State-no-longer-a-threat-to-Baghdads-black-gold.html

All the news is pointing to oil going down.

Was anyone on this forum invited to the 2014 Billderberg conference, or are there any slides online? Did someone take notes for me?!!! :(

Edited by 200p

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I know the reason for all of this.

I bought some Statoil shares in July.

2014 Bilderberg was in June - You tell me the truth!

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Was anyone on this forum invited to the 2014 Billderberg conference, or are there any slides online? Did someone take notes for me?!!! :(

Sorry, I went to the Battenberg conference this year for a change instead.

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Next years Bilderberg is also in June (maybe the time is the same every year, but the location changes) - so perhaps a pivot point for oil then?

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When oil reaches $0 per barrel the price at the pump for a litre of petrol will be 80p.

That's the duty and the VAT, and the VAT on the duty.

Interesting times though. Saudi is trying the bankrupt the American shale oil producers. It seems no-one really knows what the shale oil production costs are, but if the price continues to fall there could be bankruptcies. Even sub $95/b could mean a lose for some producers.

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When oil reaches $0 per barrel the price at the pump for a litre of petrol will be 80p.

That's the duty and the VAT, and the VAT on the duty.

Interesting times though. Saudi is trying the bankrupt the American shale oil producers. It seems no-one really knows what the shale oil production costs are, but if the price continues to fall there could be bankruptcies. Even sub $95/b could mean a lose for some producers.

I don't believe the Saudis are trying to do that at all. Because it would be stupid. What will happen is that yes non diversified shale producers will go bust. But their assets will be sold off and mothballed, only to reappear again when the price goes up. The only way the Saudis could win is if they buy up the assets, but I don't see the yanks letting them do this, plus there are a huge amount of unexploited assets in the US that will become viable again once the price goes up.

I think the Saudis have basically been in the game long enough to realise that OPEC is ineffectual and although they are a large producer they are not dominant enough and they lack the ability to control the price to any significant degree, especially when there are so many additional resources coming on stream. I think we might see low oil prices for a long time going forwards, maybe 2 years at least. This will be enough to bankrupt Putin and Venuzula.

Edited by Gigantic Purple Slug

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