"Trade volumes were expected to remain light on Monday,". . And bears exploit the opportunity to beat price of oil a little down. This bears are really some activists. They probably bought million September/October put options under $40 ...
Most demand is generated by ordinary consumers, which drive cars and use chemical ingredients.. . It should be big recession to change something in demand side, except steady growth in parallel with population growth.. . On supply side everything depend of agreement between OPEC and Russia and speed of fall in shale production.. . For now (September) price could be here around (43-50), but after that could ignite..
Yes, probably if this would happening FED should intervene. Otherwise chain reaction could ruin first banking system, then economy and then everybody wealth. . . Intervention is not so complicated. They could just bought a lot of ETF stocks with indices (SPY, QQQ, ...) and reaction would come in minutes, since this ETF then run to buy all kind of stocks. Or they can use opposite mechanism as is used by WS bears and just buy a lot of calls for this equities.
I don't understand this reporting here. As we can see from report every and each rig count went down, but you report about only one that went up (for one). If this is not misleading information, then I don't know which is.. . file:///C:/Users/User/Downloads/Rig%20Count%20Summary_082815.pdf.
Lets not forget how it started.. . With "strong dollar" as we remember. Which devaluated all other currencies from club of 7. After that export from China fall sharply to EU and Japan.. . Probably production grow in EU and Japan accordingly, but market haven't sensed this yet :-). . So now, Yuan will go little lower, EUR and Jen little up and it will be some order in world again.. .
Gold is primary hedge through history.. . Nothing can replace its role in that.. . Every rich man and women in this world has at least 10% in gold. So it goes.
20 year. You must be kidding. This are not 80's. World is global. with low prices, supply will vanish and then price will go up.. Like somebody said, cure for high supply is low price and cure for high demand is high price. . Currently demand is high, because financing is free and there is a lot of player in industry that are far over any normal level of debt. When they will hut bankruptcy, supply will go down.
How wouldn't be a recession if market speculators beat down the prices from which live half of the world?. . this price drops in commodities are not natural.. . somebody prepare market for end of the interest free money. In this case ownership of commodities company that earn real money and cover cost of financing is the only way.
With "cost free" that doesn't have even expiration time yet, everything else wouldn't be logical. I don't remember that would be ever in history that somebody can borrow such quantities of public money for free. Even former Soviet Union didn't provide that for their satellites. It goes on harm to saved money of middle class and other owners of money..
This "weather forecast" doesn't help a lot. Dollar is in historic lows, while crude is not, especially if we take in consideration strength of Dollar. . Probability soon or later Dollar will go 10-20% up and crude won't go anywhere.
Beaten down shares?!? 1.5% under historic record level is beaten down for you? Good joke.. . It was just good opportunity to pump a little more, because they all think that rate hike won't happen this year or ever. But FED is obviously coming back from winter sleep.
Every comodity has its "natural price". It can drop below but not to much, because production shrink. And NG is already deep in this zone. US NG prices are aprox. 85$/1000 m3 and world prices are between 300-400$.
it is over with dollar growth. In IMF session was clearly said that so strong is threat to world financial stability. National Banks will intervene (ECB, FED, ...).
this can change quite fast. Shale was here for decades and nobody exploit it. They needed price above 100$ to become profitable.. . at 60$/ bbl nobody will invest in this type of production,.
The price is bellow production cost of quite large part of industry, not to say what more would be needed for "investment" premiums.. . WTI will go soon to at least 60$, otherwise production will shrink and shrink.... . The law's of economy something work slow but always consistently.. . .
There is economy behind.. . EUR/USD can't go in parity. Even at 1.35 Europe has big trade suficit and US deficit.. Parity isn't sustainable from the perspective of international trade..