Oil fell nearly 6% today, causing a panic amidst the sector. A whole slew of names dropped double digits, making today the worst rout in the oil and gas sector in recent memory.
I suppose when you have a small population and 654 billion dollars saved from the good years of $100 oil, you can afford to ruin your #1 export, in order to destroy your competition. That’s exactly what Saudi Arabia is doing now. Say goodbye to energy independence and get familiar with bowing down to the King of Sand for the next 50 years.
Due to the severity of today’s drop, down more than 8% for oil stocks, debt/eq ratios are blowing out–ballooning the amount of distressed debt to $265 billion.
That only includes stocks that are listed here. The level of carnage that will take place in 2016 will remind you of the sweet summer days of 2008.
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How fucking stupid are the Saudis? They themselves recently became a debtor nation, when they’ve always been a creditor nation. They are also hurting themselves, whether they know it now or not.
Oil embargo led to US ww2. Oil drop was one of the hits aimed at Russia. It was kept artificially high a couple years anyway. Tanker supply glut and pileup in places comical. Highyield another 52wk low today. And of course kiddies don’t forget 2008-oil
684 bill in currency reserves
they want bankruptcies.
everyone calling them stupid is an idiot
they’re smart af. u think they give a shit riding around in their gold ferraris
How is this Saudi “destroy the competition” concept NOT propaganda? So what if there are bankruptcies galore? The moment the price recovers, new entities will borrow money, uncap the wells, and start pumping. The current lower price is a reflection of that simple fact combined with falling demand for oil.
If anything, the bust is a boon for the frackers as they will come back more efficient due to lower costs and improved technology.
You are spot on as always. The House Of Saud has basically decimated their “Cartel”. They are quite confident that no country will impose tariffs on their OIL? (Why doesn’t U.S. Impose tariffs to protect its energy independence & Renaissance?) The “FREE MARKET” that destroys our businesses & manufacturing is HELPING WHOM? It is economic terrorism & Saudi Arabia is also ground zero for teaching & exporting radical Islam & the world know this. I don’t why we are not economically fighting back? U.S. OIL interests HAVE LOST & DID NOT EVEN PUT UP A FIGHT?