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Mitt Romney: Obama to blame for high gas prices
http://www.cbsnews.com/news/mitt-rom...gh-gas-prices/
'Sup creeper?You Lie
little butthurt CC is stalking me as much as TB
Rent free.
Mitt Romney: Obama to blame for high gas prices
http://www.cbsnews.com/news/mitt-rom...gh-gas-prices/
the shakeout in junk bonds could be very, very painful:
http://www.nytimes.com/2016/01/17/bu...-how-sour.htmlBut with oil falling below $30 and no bottom yet in sight, there is probably further pain ahead in the oil sector, according to Matthew Mish, global credit strategist at UBS, who also contends that prices on junk bonds outside of energy have not come down enough either.
“In energy, bond valuations are pricing in an uplift in underlying commodities, so there’s more downside risk if prices hold at these levels for a long time or go lower,” Mr. Mish said in an interview. And elsewhere, he added, “we do not see a marginal buyer for lower-quality credit.”
As evidence of the disconnect between the free fall in oil prices and energy bond prices, Mr. Mish noted in a report issued on Wednesday that most high-yield issuers’ business models “don’t work with oil in the $20-$40 range.” In this environment, even energy bonds that are trading at distressed levels — 20 cents to 30 cents on the dollar — could be worth “close to zero in reorganization.”
Some retail investors have sold high-yield bond fund holdings recently, reducing overall exposure in this market to about $250 billion from $300 billion. Still, that’s a lot of money riding on what may cons ute a “hope trade.”
David Kotok, chairman and chief executive of berland Advisors, which oversees $2 billion in assets in Sarasota, Fla., said his firm recently exited the high-yield corporate bond market entirely because of risks that he considers real but not yet evident.
“For six years, a subset of the investing class — and a large one — chased yield in complex ways, and by doing so they took on currency risk and exposure to commodity prices and emerging-market countries,” Mr. Kotok told me. “Now all three now are unraveling. I don’t need to see the fire — I see the smoke.”
UAE offers free oil to India:
http://oilprice.com/Energy/Crude-Oil...rage-Woes.htmlIn an oil sector first, the oil-rich United Arab Emirates (UAE) has offered free oil to India in return for a storage deal at India’s planned underground facility as the supply glut worsens and some analysts predict that ‘’peak storage” could sending prices crashing further.
The UAE’s Abu Dhabi National Oil Company (ADNOC) has agreed to store crude oil in India's maiden strategic storage facility, sweetening the deal by saying India could take two-thirds of the oil for free.
It’s a great deal for India, which is almost fully reliant on imports to meet its crude oil needs.
India has lured Abu Dhabi in with the building of a massive underground storage facility system that will be able to take on 5.33 million tons of crude as a bulwark against global price shocks and supply disruptions.
Iran ships first oil to Europe in 3 years
http://www.marke ch.com/story/iran-ships-first-oil-to-europe-in-3-years-2016-02-15
Drillers’ cash-flow gap expected to rise to $130 billion in 2016
HOUSTON – Oil-price projections for 2016 continue to fall, and analysts expect that will create an even bigger cash-flow gap for North American oil companies.
Consulting firm AlixPartners believes more than 130 oil drillers in the United States and Canada will come up $130 billion short on the internal cash they need to operate. That’s nearly a third higher than the firm’s projection of $102 billion last month.
Since January, banks and credit rating agencies have revised their oil-price forecasts lower amid expectations of slower economic growth and a stubbornly high crude oil glut. Morgan Stanley recently cut its 2016 outlook for U.S. crude by 11 percent to $37 a barrel.
Next year, U.S. crude will average $43.10 a barrel and, in 2018, $45.60 a barrel – a bleak forecast for producers in the United States and Canada given high break-even costs for drilling new wells. The International Energy Agency says break-even costs for shale drilling are about $59 a barrel; for upgraded Canadian oil sands projects, $95 a barrel.
AlixPartners said last month 2016 profits will come in 20 to 30 percent lower for North American drillers and returns on the capital they spend will be a meager 3 percent. And that’s just for companies that remain “in the black.”
http://fuelfix.com/blog/2016/02/15/d...llion-in-2016/
Saudi Arabia, Russia to Freeze Oil Output at Near-Record Levels
“If Iran and Iraq are not a part of the agreement, it’s not worth much -- and even then there is still a question of compliance.”
http://www.bloomberg.com/news/articles/2016-02-16/saudi-arabia-and-russia-agree-oil-output-freeze-in-qatar-talks
worse before it gets better:
http://www.ft.com/intl/cms/s/0/d48b1...#axzz43fKNnLgG
Subscription..
Does it go back up to 40.00? Im heavy in uwti. Was down big but up today!
I think so. But probably going to be in a range for a while. Up and down based on comments about the upcoming producers meetings and the storage report.
Storage report showed a big draw down this week as opposed to the anticipated build.
Was also a report of an explosion going off at an Iraqi site yesterday but didn't see anything else about it.
yea very unstable but hoping the bulls keep raising the price
So what are you in? Futures or options?
Triple leveregad stock UWTI
very interesting article
http://oilprice.com/Interviews/85-Cr...e-Rothman.html
so assuming it's right what the best stock play today?
But assuming he's right, then you'd want the most leverage possible. So Big Empty's UWTI. Or load up on out of the money options for that month.
yea there is the triple leveraged UWTI and there is USO but uso doesn't move the times the amount like UWTI. I invest 15k at 19.21. for me that's a lot. Ill tell you im having heart issues all day. I just have a feeling that oil will go up somewhere between 40-45 in the next 2 months. UWTI isn't meant to be a long term investment it decays.
Have you thought about using futures instead? You can buy WTI futures with around $4500 margin per contract.
Im licensed but I don't have any experience with futures. just your basic stock and options but I don't feel like trading options. I've been playing around with UWTI with small money since the new year and figured I can get my truck paid off by summer going big ha ha
damn....well good luck to you
....no doubt....$50 is the new high-end....that is the pricing point where only major players in the fracking industry remain compe ive and the pricing point where non-frackers have no incentive to increase above....
Are you planning to hold for weeks or just day trading it?
I read up on it a little. I'm a little unclear on the decaying part. I understand they have to reset their positions monthly but why and how does your return decay if oil moves up?
the decaying is very hard to explain. There is alot of math involved. This stock can move in any direction 10-30% in one day. U can google "uwti decay" and there are some explanations out there. It wont decay by a great deal but it does slowly. If ur bearish DWTI is the flip side to trade. Ive read people holding them no more than a few days to a month or two. If u trade them ull see how much they can move in a few minutes sometimes. I was down 2200 and up 1500 within one hour the other day. Oil is up a 1.33 pre market. I may sell it today & make some cash. Its so hard to sit on it with ur up over a G.
Last edited by Big Empty; 04-08-2016 at 07:47 AM.
This Could Explain One Of The Biggest Mysteries Of Cheap Oil
Here’s a simpler hypothesis: Maybe the Saudis aren’t cutting production in the face of low prices because huge portions of their oil reserves might eventually become worthless. That’s what James Rowe, an environmental studies professor at the University of Victoria, thinks.
If that happens, today’s oil prices won’t look low — not when there’s an overabundance of an asset that can’t be sold. But oil prices are the lowest they’ve been in 12 years, you say. How could they ever be considered high?
This explanation relies on two related ideas: a carbon bubble and stranded assets.
The carbon bubble refers to the fact that energy companies around the world are sitting on five times more fossil fuels than can be burned, the research nonprofit Carbon Tracker estimates.
Those assets, worth about $2 trillion, are referred to as “stranded assets.”
So what does that mean for an oil company that controls a state? It might as well sell as much oil as possible while still can.
Saudis can’t sell oil for $100 a barrel, obviously, but Rowe said they “appear to be positioning themselves for the next best option: gobbling up as much of the earth’s remaining carbon budget for themselves before the bubble bursts. Isn’t it better to sell at a lower price than to receive nothing at all from vast unburnable reserves?”
By the time the world has moved on from oil, Rowe said, Saudi Arabia “will have sold what it could while its reserves were still burnable.”
And the country will have moved on as well. Its oil minister, Ali Al-Naimi, has said Saudi Arabia will be a solar exporter by the middle of this century.
http://www.huffingtonpost.com/entry/...b0000de4039231
How's them apples for all you astute stock market players?
The Repugs, and all other corrupt conservatives planet-wide, defending their paymasters against renewables are propping up a dying horse.
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