Mar. 28 at 2:19 AM
Odds are, US oil producers stock prices fall this year.
We’ve got Saudi Arabia who in December stated that if they can’t have
$80/barrel then they are going to turn on the faucets. Estimates are they’re technically profitable around
$10/barrel so over producing to the point where other producers go bankrupt is a real option for them.
Plus Trump is pushing the Drill baby Drill. That translates to me as “increase the supply.” Basic economics, more supply with same demand leads to lower price.
And what happens when a competitor produces more oil? What do other producers do? Produce more too! They can’t afford to lose market share longterm. So as one producer makes more oil, so does everyone else. Until a point where enough producers go bankrupt that OPEC feels like they can get their desired
$80 if they reduce production.
I’m in
$NRGD which is short big oil producers. Fee waved for first 6 months. Triple leveraged.
$OILD is another option
$SCO and
$ERY as well.
