Russia told OPEC to go fuck itself at the OPEC+ meeting this weekend. He walked out on 'em because they could not agree on a ppb. They didn't think he would actually walk, but he did. Then he raised production and dropped his ppb to below the OPEC rates.
MbS retalliated by further dropping the ppb, and it spiralled into a price war. At midnight last night, ppb was at 27, which is IN-SANE.
At market open today, everyone was foaming at the mouth to cover margin calls and reposition their assets accordingly. And, predictably, the dow dropped.
The WuFlu is still pummelling markets, but oil won't cause a world-ending catastrophe. That is because oil's inherent value far outstrips any other asset on the planet. As such, it cannot hang out at prices so low forever.
Meanwhile, all our shale oil is fucked for now, because the high cost of production means producers can only make a profit if ppb is over about 50. Now that we are at around half that, shale will take a big hit, which is dicey because the shale oil market is highly leveraged right now.
All this bullshit has pushed the VIX sky-high. And that means errybody wants their money OUT of the market until the VIX drops.
This will be a fire sale. But it won't break us.
PREPPERS, HOPE YOURE READY. Pulling through shit like this with flying colors is what makes us Americans.
Your explanation is the first one I understand. Stupid Econ sub turned lefty and everybody else is stupid with their desire to tie this to Trump. Thank you.
Honestly Biden winning Super Tuesday had a lot to do with it.
If there’s any chance at all of a Bernie presidency then everyone would be right to panic. A Biden presidency would just be another period of boring shittiness and stagnation like the Obama years, but a Bernie presidency would be a new Great Depression.
I'm fuming. Here in France, with the barrel prices the same as they were in 2009, the price of the liter of gas is 0.30€ to 0.40€ higher in comparison. I can pay up to 100€ to fill the 70L (about 18.5 gallons) tank full with diesel, from empty.
I think we are getting fucked over somewhere, and it's not taxes only (despite being royally fucked by taxes already). /rant
Indeed. It doesn't help that we don't produce our own crude (because we don't have any) but that high?
It's my pet-conspiracy-theory that the government, ruling that 80kph (~50MPH) shall be the new maximum authorized speed on national roads compared to 90kph (~56MPH), saw that law-abiding citizens would respect the new limit, that fuel economy would be improved as a result, leading to less gas sale, and added more taxes to make up for the loss.
Sounds like Putin smelled an opportunity to do more damage to the US stock market and took it. That's OK, we'll get cheaper gas at the pump and once we decouple from China, which is happening now as everyone forges new supply chains outside of China for their manufacturing and packaging, then we'll really see our stock market take off.
I just commented this in another thread...
Russia told OPEC to go fuck itself at the OPEC+ meeting this weekend. He walked out on 'em because they could not agree on a ppb. They didn't think he would actually walk, but he did. Then he raised production and dropped his ppb to below the OPEC rates.
MbS retalliated by further dropping the ppb, and it spiralled into a price war. At midnight last night, ppb was at 27, which is IN-SANE.
At market open today, everyone was foaming at the mouth to cover margin calls and reposition their assets accordingly. And, predictably, the dow dropped.
The WuFlu is still pummelling markets, but oil won't cause a world-ending catastrophe. That is because oil's inherent value far outstrips any other asset on the planet. As such, it cannot hang out at prices so low forever.
Meanwhile, all our shale oil is fucked for now, because the high cost of production means producers can only make a profit if ppb is over about 50. Now that we are at around half that, shale will take a big hit, which is dicey because the shale oil market is highly leveraged right now.
All this bullshit has pushed the VIX sky-high. And that means errybody wants their money OUT of the market until the VIX drops.
This will be a fire sale. But it won't break us.
PREPPERS, HOPE YOURE READY. Pulling through shit like this with flying colors is what makes us Americans.
Your explanation is the first one I understand. Stupid Econ sub turned lefty and everybody else is stupid with their desire to tie this to Trump. Thank you.
Wait.....wait....wait...
I was told Biden winning Super Tuesday was responsible for the market rising last week.
Surely he did something this week to cause it to go down?
Everything before the drop was Obummers economy and this week is Trumps. It's all really very simple.
Up, Trump had nothing to do with it. Down, Trump is incompetent
Biden endorsing Trump is what caused the market crash, plain and simple. (/s)
Honestly Biden winning Super Tuesday had a lot to do with it.
If there’s any chance at all of a Bernie presidency then everyone would be right to panic. A Biden presidency would just be another period of boring shittiness and stagnation like the Obama years, but a Bernie presidency would be a new Great Depression.
Yes, he did a great job succinctly explaining the true situation.
I noticed that silver is not skyrocketing. The cash from sell off is not going there.
I'm fuming. Here in France, with the barrel prices the same as they were in 2009, the price of the liter of gas is 0.30€ to 0.40€ higher in comparison. I can pay up to 100€ to fill the 70L (about 18.5 gallons) tank full with diesel, from empty.
I think we are getting fucked over somewhere, and it's not taxes only (despite being royally fucked by taxes already). /rant
Thats a brutal price.
I buy diesel in bulk around $450 per 1175 Liters. We buy about 650 Metric Tons at a time.
Indeed. It doesn't help that we don't produce our own crude (because we don't have any) but that high?
It's my pet-conspiracy-theory that the government, ruling that 80kph (~50MPH) shall be the new maximum authorized speed on national roads compared to 90kph (~56MPH), saw that law-abiding citizens would respect the new limit, that fuel economy would be improved as a result, leading to less gas sale, and added more taxes to make up for the loss.
Sounds like Putin smelled an opportunity to do more damage to the US stock market and took it. That's OK, we'll get cheaper gas at the pump and once we decouple from China, which is happening now as everyone forges new supply chains outside of China for their manufacturing and packaging, then we'll really see our stock market take off.
ayy thanks for the correction!