Tuesday, 10 January 2017 09:50

Debt Encumbered Oil, Sovereign Soil, Toil & Trouble: Can't You Hear Seems Cracking in the OPEC Empire? Featured

Depositphotos 18850537 originalsmall@WSJ reports Libya Ramping Up Oil Production, Threatening OPEC (supposed) Plans to lift global oil place by artificially limiting supply. This would be in violation of federal antii-trust laws in the US, aka collusion. Alas this is not the US. It's not in accordance with the basic tenets of economics either, hence simple supply and demand will put the kibosh on this.... Oh No! Its too late, you say?!?!?

Output hit three-year high this week as Libyan militias make deals to reopen facilities. Libya’s crude-oil production has more than tripled in the past six months, imposing an obstacle to the Organization of the Petroleum Exporting Countries’ plans to raise.

 

 

 I have warned many times that OPEC will not, as a whole, be able to adhere to sustained production cuts. Most nations have only one relevant source of revenue - and that's oil. They have hard stop budgetary needs and risk social unrest tf they aren't met. The region in general is struggling to avoid an economic hard landing, and the fundamentals and macro outlook doesn't appear to be on their side.

Look at Saud 9 months ago...

Saudi Burn rate hypothetical

 

I have tweeted about this several times. See below, and if you don't follow me on Twitter, than add me. We even have a blockchain-based solution for all to try.

 

 

 

 

 

 

 

 

 

 

 

 

 

Here are some articles I wrote on the topic at Veritaseum.com:

  1. As Experts & Speculators Await Higher Oil Prices, I Anticipate A New Energy Paradigm: Monetize Your Outlook Through Veritaseum(Blog)"Low oil price is a function of excessive supply+true demand realization" - Reggie Middleton There should be no surprise that Saudi refused to negotiate on a oil production freeze. They, like all o ...Created on 16 April 201613. 
  2. A Take On How Negative Interest Rates Hurt Banks That You Will Not See Anywhere Else(Blog)The Bank of Japan and the ECB are assisting me in teaching the world's savers, banking clients and corporations about the benefits of blockchain-based finance for the masses. How? Today, the Wall Street ...Created on 14 April 201614. 
  3. The Bearish Case Against Oil Gets... Bearier...(Blog)...  the price of oil, LNG and the impact Elon Musk is having on the oil industry. Stephen Schork of the Schork report was the standout personality of the panel (buyside vs sellside panelists) basically ...Created on 13 April 2016 

 These are relevant legacy BoomBustBlog research reports that involve the oil industry.

pdf Tanker and Shipping Company Investment highlights Pro (473 KB)

pdf Oil producer solvency analysis (583 KB)

 

Last modified on Tuesday, 10 January 2017 10:40

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