Because nothing says ‘we’re killing it’ like $38 crude.
I promise you, without a shadow of a doubt, these gains are unsustainable.
I offer you an analogy to explain the current situation in the energy sector.
Imagine that you’re living in a giant mansion. You bought the dwelling at the peak of your business cycle. You were fat, greedy, a gluttonous human being of extreme indecorous depravity. You moved your bratty family into a 10,000+ sq ft home and spent upwards of $100k per month in general upkeep and mortgage.
You spent your days and nights living like a fucking Caeser, ordering subjects to fetch things for you, grill you some steaks, wash your car and bicycles. Then everything changed for the worse. Your business cratered by 90%. Your savings quickly depleted under the heft of your absurd expenditures. Then you enjoyed a small respite. Your revenues bounced 40%, from $10k per month to $14k, well below the $100k needed to maintain your hedonistic lifestyle.
Bankruptcy is inevitable. This is the current state of the oil markets.
Good day.
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For the first time since 2011 I have started to lighten up.
I just don’t wanna fight the fed.
The Fed still essentially tightening with respect to the rest of the world. I’m neutral on the rest of the year and bearish in 2017 if oil doesn’t rally by then.
Indeud.
Fly, you forgot the part where the glutton has to fill the pool and jacuzzi with the earl he’s now unable to sell, even at a loss. Steve the Neighbour had the misfortune to buy beside this guy, and he’s worried about his kids and pets being immolated on the long weekend. Also, someone stole his lawnmower.
…… how long do you think you will have to wait before you trigger another oversold condition?
*Caesar
I bet a friend PBR would file by EOY. Let’s hope I am right and don’t have to hand over $5!
Hedge with options 😛
Are they Trump steaks?
Yes, there will be bankruptcies, but don’t expect the Fed to allow oil to stay this low for too long. I expect oil to keep on rising with wreckless abandon together with gold.
The bottom is not in yet with oil and commodities. Wait until the dollar strengthens again you’ll see the capitulation in oil. It’s all about the credit markets and the dollar.
If smaller weaker erl companies go bankrupt, then the bigger ones can buy their assets at fire sale prices. It seems that the big ones will likely survive this.
Is the Fly Blue Star? Or Blue star is the fly ?
I could be on to something. Lol
Regards
Chuck Bennett
Nymph’s Take…Dollar got sold off like crazy and the Yuan became stronger to the USD. China’s Daily fixing rate is going to take notice of that and say they have a reason to WEAKEN the Yuan against the Basket of Currency. YUAN drops, Aussie is having their version of NFP tonight. Weaker Yuan, Weaker NFP due to mining layoffs…mean A LOT of profit taking in the Aussie and Kiwi( they are getting GDP data). World follows China and Commodity profit taking goes crazy. FWIW last night Oil was popping over rumors of a Freeze Meeting this week…have to go check on that status.
yep….MOSCOW (Sputnik) — Earlier in the day, Novak said that major oil producers would meet in the capital of Qatar, Doha, on April 17 to discuss the agreement on oil production freeze
just ordered my 51st pair of kicks. as usual NKE. championship drive edition Field General 2’s – all white with a gold swoosh just $99 clearance at nike.com. OH….WAIT WHAT WAS THE TOPIC?
Are we talking regular steaks or trump steaks?
But look at someone like DVN who is hedged way way higher. They were sold off purely on the price of crude. Once this corrects to a rational price which its doing now the price will correct as well. There will be little effect on revenues due to the hedging that gets them through this trough. We continue higher and use the ark to transport oil!
How dare you mention long DVN. Fly’s stock of the year was short DVN