OPEC has decided to leave production quota's unchanged.
Well, whoopty-freaking-do.
OPEC doesn't matter anymore. Only Saudi Arabia matters. OPEC needs to appear to matter a little longer, and for whatever reason, that seems to be OK with KSA. What was OPEC going to do? Announce a 2 million barrel per day increase effective immediately? Then what? Wouldn't they actually have to deliver?
My bet is that there is little to no spare capacity, including KSA. I didn't say for sure... that's just what I think is the case, and I believe this because prices are high enough to encourage production from any and every quarter... forget WTI, Brent is almost $120. That is serious incentive. I am long again (actually more short puts than straight long, but I am long, too).
QE3 is not coming anytime soon... Oil production has little left to increase with... but there is certainly a great deal more $100 oil around than we thought in 2005 - 2008 as it turns out.
The Oil slog continues...
6 comments:
I think SA might have a little more capacity. Though with oil at 100+ why not bring it online We really need to drill here where we can. Hell my Dad parents used to get a monthly check form shell for the property they live on now. The released rights 20 yrs ago. I am sure there are 10,000 spots like this. I don’t think we can negate all of the fall, but landing on soft pillows is a lot better than spikes.
On another note the freedom bell is about to start ringing. The 11th circuit court looks ready to strike down the mandate in the health care law. The problem is that the idiots who wrote the bill forgot the severability clause. It basically allows the bill to be put in effect without the unconstitutional part of the legislation. In this case they forgot to insert the language and thus the service portion won't be able to go into effect without the revenue portion, nullifying the whole bill. The biggest advantage to this is that they will stop implementation of the bill.
Dex
Dex,
I hope that happens, and then the Supreme Court takes the same stance. That bill is pure evil on so many levels. It serves every moneyed business interest in the whole medical food chain. This will be one for the people and against the Socialist/Corporate-Fascist butt heads.
Regards,
Coal Guy
And the sad reality is that the supporters of this silly bill can't see it for what it is.... the dirty truth of our body politic is that few read and even fewer understand the potential outcomes of sh#! like this.
The judges even asked the government lawyers if they allow this bill, what service could they government not demand the citizens to buy. Think about the implications. I guess when conservatives get in power we could force everyone into buying at least one rifle and Glock 17 for good measure. Hey a least the constitution talks about guns!!! There argument was that we are all already part of the health care system, well under that reasoning they could tell us what foods to eat, how much, force people to work out, close down all fast food, do away with high carb pastas and tax you extra for breathing more CO2 out. As Horowitz say’s inside every liberal is a totalitarian ready to burst out. Everything they do is about control, everything.
Dex
To think that one can arrange the details of 300,000,000 lives and make everybody happy is a clear definition of insanity.
Regards,
Coal Guy
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