Replies to This Discussion

Permalink Reply by evan on October 14, 2014 at 11:17am

Anne your the best. Always positive thoughts. Good job. Way to go

Permalink Reply by Charles Randolph on October 14, 2014 at 2:36pm

I'll delay drilling below $70. For the speculators, will you jump in now or wait until 70 ?

Permalink Reply by Charles Mitchell on October 15, 2014 at 5:32am

These are questions you need to ask the Saudi's and Vlad Putin.  The Saudi's are getting two birds with one stone here. 1. They get to make the frackers sweat. If you don't think American frackers are spread thin and up to their chins in debt, you don't follow the markets. The smaller operations are under major pressure, not just from the price of oil, but from the debt markets too. These companies have to keep running by often refinancing their debt.  I don't think Saudi would be disappointed if some of these players went bankrupt.
2. Vlad keeps getting punished because so much of of regimes financing comes from oil. His banks pay the Oligarchs in rubles, but he sells the oil in American dollars. So as the ruble falls against the strengthening dollar, his banks see their reserves shrink more quickly.  Luckily Germany and most of europe need heat for the winter. But Europe gets double smashed as they are getting pushed into a recession with this strong petro dollar.

The question really becomes, will Pres. Obama sign an executive order allowing oil export ? Will that help the Europeans or hurt them, as they'll still have to pay for barrels in US dollars, which is strengthening against all currencies.

Is a strong dollar good for America? or will it push the whole world into a recession?