Zero Hedge....
Oil Prices Collapse After OPEC Keeps Oil Production Unchanged
Submitted by Tyler Durden on 11/27/2014 - 09:58
But, but, but... all the clever talking heads said they wil have to cut...
*OPEC KEEPS OIL PRODUCTION TARGET UNCHANGED AT 30M B/D: DELEGATE
WTI ($70 handle) and Brent Crude (under $75 for first time sicne Sept 2010) are collapsing... as will US Shale oil company stocks and bonds (and thus all of high yield credit) tomorrow.
19 US Shale Areas That Are Suddenly Endangered, "The Shale Revolution Doesn't Work At $80"
Submitted by Tyler Durden on 11/26/2014 - 15:41
“Everybody is trying to put a very happy spin on their ability to weather $80 oil, but a lot of that is just smoke... The shale revolution doesn’t work at $80, period.”
For The World's Largest Rig Operator, The "Recovery" Is Now Worse Than The Post-Lehman Crash
Submitted by Tyler Durden on 11/26/2014 - 12:24
The last time the world's largest oil and gas drill operator, Seadrill , halted its dividend payment was in 2009, shortly after Lehman had filed and the world was engulfed in a massive depression. Retrospectively, this made sense: the company was struggling not only with depressionary oil prices, but with a legacy epic debt load as can be seen on the chart below. So the fact that the stock of Seadrill collapsed by 20% today following a shocking overnight announcement that it had once again halted its dividend despite what is a far lower debt load than last time, indicates that when it comes to energy companies, the current global economic "recovery" - if one believes the rigged US stock market - is actually worse than the Lehman collapse.
US "Secret" Deal With Saudis Backfires After Oil Minister Says US Should Cut First
Submitted by Tyler Durden on 11/26/2014 - 08:21
Who could have seen this coming? With oil prices holding at 4-year lows, heavily pressuring around half of US shale production economics, the "secret" US deal (see here and here) with Saudi Arabia to crush Russia via oil over-supply in a slumping demand world appears to be backfiring rapidly for John Kerry and his strategery team. Capable of withstanding considerably lower prices for longer, Saudi Arabia's oil minister Ali al-Naimi proclaimed "no one should cut production and the market will stabilize itself," adding rather ominously (for the US economy and HY default rates), "Why should Saudi Arabia cut? The U.S. is a big producer too now. Should they cut?" With prices expected to drop to $60 on no cut, maybe the "unequivocally good" news for the US economy from lower oil prices should berethunk.
Chart of the day.... and key comment from 11/26 !
Chart of the day.... and key comment from 11/26 !
http://www.zerohedge.com/news/2014-11-26/us-secret-deal-saudis-backfires-after-oil-minister-says-us-should-cut-first
****
Which led the Saudi Minister to comment...
"Why should Saudi Arabia cut? The U.S. is a big producer too now. Should they cut?"
* * *
Tweets.....
WTI Crude Crashes Below $70 For First Time Since June 2010 http://www.zerohedge.com/news/2014-11-27/wti-crude-crashes-below-70-first-time-june-2010 …
Sanctions Watch
Bad day for Russia: EU agrees new sanctions and OPEC agrees to keep current production target, oil price falling
DiscoTonio
OPEC Votes Not To Cut Production, Oil Prices Plummet http://www.businessinsider.com/opec-votes-not-to-cut-production-oil-prices-plummet-2014-11 … via BI
World Wide News!
OPEC Policy Ensures U.S. Shale Crash, Russian Oil Tycoon Says: OPEC policy on crude production will probably e... http://binged.it/1yg2Otd
High risk #oil prices could slide to $60/barrel if #OPEC doesn't cut production - November #global oil production
Khaleej Times
zak brophy
Will be surprised if #Gulf members agree to cut production at #OPEC meeting if it means handing market share to shale producers.
Bloomberg TV India
OPEC Meet - Iraq Oil Minister says, Crude has $65-$70/BBL price floor. U.S. Shale has added to surplus in oil market.
OPEC Meet - Iran Oil Minister says, OPEC meeting won't be very difficult.
Madz
10:16:16 DJFN *DJ Venezuela Foreign Minister: Would Agree With Decision to Cut 5% of OPEC Production
Sri Jegarajah
OPEC: Reuters - #Venezuela foreign minister says oil market over-supplied by 2 million bpd
shoby
VENEZUELA FM : WILL PROPOSE #OPEC CUTS OUTPUT
Emiko Terazono
Is $60 the new $100? @petromatrix says numerous mentions of $60 per barrel out of Vienna suggests it cd be the new floor. #OPEC #oil
Global Markets Forum
#Oil falls $2 to 4-year low as #OPEC production cut seen unlikely. Price wars ahead? http://reut.rs/11X05Ky
Bleutrade
Oil Price Plunge Suggests An OPEC Cut Is Unlikely - Oil prices fell on Thursday ahead of a major meeting of OPEC m... http://ow.ly/2RgMx1
BI: Finance
Oil extends its drop into Opec meeting. Brent #oil down >2% to a fresh 4yr low of 75.48, lowest level since Sep2010.
The Guardian
Can Vladimir Putin save Saudi Arabia's sheikhs from the glut of oil? http://gu.com/p/43k2e/tw
Anders Östlund
#OPEC analyst: “Don’t get a deal, we’ll probably be at $70 soon, and we could go down into the 60s.” http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/oil-could-plummet-below-70-if-opec-fails-to-cut-production/article21783113/
The Globe and Mail
As we wait for OPEC, a reminder how much and how quickly oil has fallen. -34% since June:
Donatella Rovera
#Libya Thinni gov. appoints new oil chief pre- #OPEC summit but no invite likely as OPEC considers admin illegitimate http://www.libyaherald.com/2014/11/26/thinni-government-appoints-new-oil-supremo-ahead-of-opec-summit/#axzz3KDmoA1ea …
#Dailychart: Poorer members of OPEC want to cut output. Richer ones prefer to keep pumping http://econ.st/1rkRCfD
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