HOPE FOR OIL PRICES

[KristiD]

 

 

[stanleypower]

Up 20% so far. 

[Laid Back]

Trump Tweet Sends Oil Soaring 25% Regarding Russia and Saudi Arabia oil deal.

 

[trident]

1 hour ago, Laid Back said:

Trump Tweet Sends Oil Soaring 25% Regarding Russia and Saudi Arabia oil deal.

 

I think reality may well put a dent in that

[Laid Back]

2 minutes ago, trident said:

I think reality may well put a dent in that

Thanks for your input 🔱 

Lets wait and see.

[KristiD]

1 hour ago, trident said:

I think reality may well put a dent in that

 

Could be.  We are definitely in a precarious time, but if Trump's involved, my money says he'll get what he wants.  But we'll see I guess.....  

[trident]

18 minutes ago, KristiD said:

Could be.  We are definitely in a precarious time, but if Trump's involved, my money says he'll get what he wants.  But we'll see I guess.....  

Globally fuel consumption has plummeted yet oils still being pumped ... soon there will no where to store it ... even with trump involved ... not looking good imo  ... rv has a better chance!

Edited April 2, 2020 by trident

[ametad]

Let’s step back and see that this market is so volatile that a tweet jumped the oil market by 20%. ARE YOU KIDDING ME!! There is so much fear that the people in the market can’t even wait and cross check and verify this information with production numbers. 
 

This is nothing but noise as the world enters the first global depression of the 21st century.

 

The US never should have left the gold standard in ‘71, lost tremendous amount t of trust when the global reserve currency couldn’t be used as an intermediary to peg to gold. That was the agreement after WWII. 
 

Anyways, very volatile market and I won’t believe the hype until I see production numbers of oil to correspond.

[horsesoldier]

12 hours ago, stanleypower said:

Up 20% so far. 

 

An amorous Guy and his Mathematician Girlfriend are at the Drive-In movies. Mounting passion moves them to rip off their clothes and get down to business. The Gal looks to her boyfriend's " little friend " exclaiming . . . " Up 20% so Far "  

[KristiD]

12 hours ago, trident said:

even with trump involved ... not looking good imo  ... 

 

Trump has said twice now that if Russia and SA don't come to agreement, he has a plan to keep oil prices up.  He gave no hint as to what that plan is, but I think he's one of the absolute best, if not the best, businessmen in the world, and he's true to his word.  I did read this oped earlier this week, and it puts forth one option that I think would work.  It might even be Trump's plan.  He does have a way of finding simple solutions to big problems.    https://oilprice.com/Energy/Energy-General/The-Cheapest-Way-For-Trump-To-Save-US-Oil.html 

The Cheapest Way For Trump To Save US Oil

The President of the United States has the power, at his sole discretion without any other authority, to place a fee on imported oil or products. It becomes variable when a base price (floor price) is set and a fee is paid on any imports where the price on imports is below the base price. If the base price for oil was set at $50.00 per barrel and the import price is $30.00 per barrel, then an import fee of $20.00 per barrel would be paid to the United States Treasury. Likewise, if the import price (world price) is $50.00 a barrel, then no fee is paid.  Thus, the fee is variable depending on the price paid for an imported barrel......

 

......

The Effects of the Fee

The majority of the oil in the world is owned by a government and therefor a government will set the price of oil. The United States is the largest consuming nation in the world, however, because our oil is owned by private industry, the United States does not currently have a role in setting the price. We have long been held hostage to the policies of OPEC and other governments. It is estimated that the current consumption in the U.S. is approximately 20 million barrels per day. Production estimates range between 11 and 13 million barrels per day, meaning a deficit between 7 to 10 million barrels per day. If an import fee with a base price of $50.00 per barrel is placed on oil and the US imports of 7 million barrels per day then the price of the imported barrel would be $50.00 (price plus fee). Any seller would seek this price and prefer to sell to the U. S. as opposed to selling at a lower price set by some financial market indices. Likewise, other consuming nations, seeking to maintain supply, would pay a higher price to purchase oil. Purchasers in the U. S., required to rely on imports would in turn pay a higher price for domestic oil than market indices. As such, the world oil price would seek a level set by the United States base price (floor price) as set by the import fee. Accordingly, the United States, would become a vital participant in determining the world oil price.

 

Trump has said previously that he wants oil below $40, so I think this author's $50 price is too high, but it explains the plan well and I think it would work.  At this point, I still put my money on Trump, but time will tell.  In the meantime, come on RV!!!!

[yogaman]

22 minutes ago, KristiD said:

 

Trump has said twice now that if Russia and SA don't come to agreement, he has a plan to keep oil prices up.  He gave no hint as to what that plan is, but I think he's one of the absolute best, if not the best, businessmen in the world, and he's true to his word.  I did read this oped earlier this week, and it puts forth one option that I think would work.  It might even be Trump's plan.  He does have a way of finding simple solutions to big problems.    https://oilprice.com/Energy/Energy-General/The-Cheapest-Way-For-Trump-To-Save-US-Oil.html 

The Cheapest Way For Trump To Save US Oil

The President of the United States has the power, at his sole discretion without any other authority, to place a fee on imported oil or products. It becomes variable when a base price (floor price) is set and a fee is paid on any imports where the price on imports is below the base price. If the base price for oil was set at $50.00 per barrel and the import price is $30.00 per barrel, then an import fee of $20.00 per barrel would be paid to the United States Treasury. Likewise, if the import price (world price) is $50.00 a barrel, then no fee is paid.  Thus, the fee is variable depending on the price paid for an imported barrel......

 

......

The Effects of the Fee

The majority of the oil in the world is owned by a government and therefor a government will set the price of oil. The United States is the largest consuming nation in the world, however, because our oil is owned by private industry, the United States does not currently have a role in setting the price. We have long been held hostage to the policies of OPEC and other governments. It is estimated that the current consumption in the U.S. is approximately 20 million barrels per day. Production estimates range between 11 and 13 million barrels per day, meaning a deficit between 7 to 10 million barrels per day. If an import fee with a base price of $50.00 per barrel is placed on oil and the US imports of 7 million barrels per day then the price of the imported barrel would be $50.00 (price plus fee). Any seller would seek this price and prefer to sell to the U. S. as opposed to selling at a lower price set by some financial market indices. Likewise, other consuming nations, seeking to maintain supply, would pay a higher price to purchase oil. Purchasers in the U. S., required to rely on imports would in turn pay a higher price for domestic oil than market indices. As such, the world oil price would seek a level set by the United States base price (floor price) as set by the import fee. Accordingly, the United States, would become a vital participant in determining the world oil price.

 

Trump has said previously that he wants oil below $40, so I think this author's $50 price is too high, but it explains the plan well and I think it would work.  At this point, I still put my money on Trump, but time will tell.  In the meantime, come on RV!!!!

KristiD, thanks for the research! Very good info, sheds a lot of light on the subject. 

[leplusgrand]

In life and as in business, there are two cardinal sins.  The first is to act without thought and the second is not to act at all.

 

Fact: Iraq's leadership can't do what we do and that is why they despise us for it.  Its their leaders who always have always changed the conversation when the RV came to any topic because they didn't want to hear the truth since 2004.  Now comes the covid-19. 

 

Iraq's oil and its entire future has now been compromised but now Iraq is now caught and their leaders realize it.  Unless they increase the value of their own currency, they will lose their country and millions will perish.  Oil prices are depleting daily, food and water are becoming obscure and there isn't enough gold in their vaults to keep them afloat in a corrupt swamp of quicksand without world medical assistance and long-term financial objectives. Should their leaders fail to move faithfully in the name of God and for their people, then the game will conclude for them decisively in one word, CHECK-MATE.

 

Pray that their leaders act with good judgement and hearts in every decision they make, but to act swiftly.

 

Good Fortune & Greater Health to all,

Le Plus Grand'

Edited April 3, 2020 by leplusgrand
didn't print word correctly

[KristiD]

On 4/3/2020 at 9:04 AM, KristiD said:

The President of the United States has the power, at his sole discretion without any other authority, to place a fee on imported oil or products. It becomes variable when a base price (floor price) is set and a fee is paid on any imports where the price on imports is below the base price. If the base price for oil was set at $50.00 per barrel and the import price is $30.00 per barrel, then an import fee of $20.00 per barrel would be paid to the United States Treasury. Likewise, if the import price (world price) is $50.00 a barrel, then no fee is paid.  Thus, the fee is variable depending on the price paid for an imported barrel......

 

......

The Effects of the Fee

The majority of the oil in the world is owned by a government and therefor a government will set the price of oil. The United States is the largest consuming nation in the world, however, because our oil is owned by private industry, the United States does not currently have a role in setting the price. We have long been held hostage to the policies of OPEC and other governments. It is estimated that the current consumption in the U.S. is approximately 20 million barrels per day. Production estimates range between 11 and 13 million barrels per day, meaning a deficit between 7 to 10 million barrels per day. If an import fee with a base price of $50.00 per barrel is placed on oil and the US imports of 7 million barrels per day then the price of the imported barrel would be $50.00 (price plus fee). Any seller would seek this price and prefer to sell to the U. S. as opposed to selling at a lower price set by some financial market indices. Likewise, other consuming nations, seeking to maintain supply, would pay a higher price to purchase oil. Purchasers in the U. S., required to rely on imports would in turn pay a higher price for domestic oil than market indices. As such, the world oil price would seek a level set by the United States base price (floor price) as set by the import fee. Accordingly, the United States, would become a vital participant in determining the world oil price.

 

In today's White House breifing, Trump was asked about Russia and Saudi Arabia coming to an agreement to lower production to keep oil prices up.  Trump responded by saying he believes the two countries will reach an agreement because they have to, low oil prices is devasting for both of them.  Then he said, (I paraphrase) that if they don't , he will put tariffs on all imported oil.  So it looks like the above plan did turn out to be Trump's back up plan to stabilize oil plans.    I think this is good to know.

[coorslite21]

Just a thought.....after all....it's the Middle East......Boom.....and up goes the price of oil.....😮

 

Seems the US just locked a team into the Cheyenne Mountain facility today...😉😉...want to keep them safe from the virus....in this environment.....most anything could happen......it could even start with a major cyber attack on world banking.......what better time?😮      CL