Oil Prices

I doubt it matters much will there be supply cut because the game changer is outside Opec. They need to make sure their competitiveness stronger with lower oil price to see who can last. Maybe they will decide to increase output instead. Lol

IS is probably flooding the market with cheap oil which is probably resold to Turkey and then resold from there to OPEC and find its way into the world market.

Bear in mind their(IS) startup cost is basically Zero and every oil field they take over is an instant cash flow machine. So almost every barrel they sell is pure profit.

So further downside for oil price is very very likely. Shale oil is expensive to produce and very environmentally unfriendly if you look at the process of extraction. Even BHP selling off their shale oil asset in US. US just dun have a choice to develop it as they are paying too much to OPEC previously when oil was $100++ and US economy was crap.

The output from (IS) probably not even 0.1% of world output. Regardless, with ultra low interest rate and low oil price now, economy will may only one direction to go. Equity should be very attractive in the next 6 months.

Low global oil prices is giving Central Bankers blank cheques to keep printing $ without fear of nominal inflation...

Who knows, some of these cheap oil from rogue regimes are being strategically stocked up by the superpowers of the world... if that is true it could well be an ultimate conjob...

Never say never since desperate people lose their rationality...

GG

(15-11-2014, 02:08 PM)corydorus Wrote: The output from (IS) probably not even 0.1% of world output. Regardless, with ultra low interest rate and low oil price now, economy will may only one direction to go. Equity should be very attractive in the next 6 months.

(15-11-2014, 02:46 PM)greengiraffe Wrote: Low global oil prices is giving Central Bankers blank cheques to keep printing $ without fear of nominal inflation...

Who knows, some of these cheap oil from rogue regimes are being strategically stocked up by the superpowers of the world... if that is true it could well be an ultimate conjob...

Never say never since desperate people lose their rationality...

GG

(15-11-2014, 02:08 PM)corydorus Wrote: The output from (IS) probably not even 0.1% of world output. Regardless, with ultra low interest rate and low oil price now, economy will may only one direction to go. Equity should be very attractive in the next 6 months.

Buddy,

Our very own tuas hydrocarbon caravan is actually doing the job to stash away this cheap oil on offer in the market. It makes it easier for us.. as our refining industry is at jurong island.

This heavy printing of money is going out of hand currently while others "Russia" is watching over. Correct me if i am wrong, russia did not carry out heavy printing of their own currency.

It will be interesting how this will turn out in future for the power axis of Russia and China.

World’s richest terror organisation in history

If you thought Al Qaeda was the strongest force in the terrorist world, think again.

Islamic State (IS, ISIS, ISIL) is the richest terrorist group in the world according to Forbes Israel.

According to the report, Islamic State has an annual income of a staggering $2 billion.

Forbes Israel says terrorist groups often looked to subsidise their operations by engaging in criminal activities such as extortion, drug trafficking and robberies.

Another way of making money is for terrorist groups to raise funds through ‘charity’ donations and sometimes through government agencies.

Just like any successfully-run organisation, Forbes Israel explains that terrorist groups use a business model to operate smoothly, for things such as maintenance, salaries, training and the acquisition of weapons.


It sounds like ISIS has the money to burn with the terror group recently looking for someone to fill an ‘Oil Refinery Manager’ position with them.

According to the International Business Times, the right candidate would receive a salary of $225,000 – provided they were an "ideologically suitable expert to run its stolen oil fields.”

And oil seems to be the reason behind their success story.

ISIS makes big money capturing oil fields and then smuggling the oil to Iraqi traders.

According to the Iraq Oil Report, ISIS makes nearly $1 million each day by selling about 100 truckfuls of oil.

If you thought Al Qaeda was big business, think again – they pale in comparison to ISIS’ whopping income, taking home a mere $400 million annually.

The 10 richest terror organisations, according to Forbes Israel:
Read more here

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that's a lot of moolah, sure to affect oil prices even if just a bit. Can fund their own airforce soon.

(07-11-2014, 08:41 PM)AlphaQuant Wrote: Starting to feel like the perfect storm approaching for the O&G sector - the combination of a rising USD, tightening credit conditions and collapsing oil prices with futures trading contango.

Rig speculators, over-leveraged platform owners, E&P operators over-spent on capex along the entire value-chain are looking more and more vulnerable. Quite a few corporate bonds on the OTC markets looking rather dodgy as well, quite a few balance sheets looking very stretched.

Pricking of the bubble is inevitable but hopefully it will be self-contained and not prove to be overly contagious.

I don't think these debts have been resold many times over the international debt markets as in the case of subprime.......................
________________________________________________________________________________________________________________

Oil price slump to trigger new US debt default crisis as Opec waits

Falling oil prices and and US shale drillers drowning in a sea of debt could be the spark for a new credit crunch

Remember the global financial crisis, triggered six years ago when billions of dollars of dodgy loans - doled out by banks to subprime borrowers and then resold numerous times on international debt markets - began to unravel and default?

Stock markets plunged, banks collapsed and the entire global financial system teetered on the brink of catastrophe. Well a similarly chilling economic scenario could be set off by the current collapse in oil prices.

Based on recent stress tests of subprime borrowers in the energy sector in the US produced by Deutsche Bank, should the price of US crude fall by a further 20pc to $60 per barrel, it could result in up to a 30pc default rate among B and CCC rated high-yield US borrowers in the industry. West Texas Intermediate crude is currently trading at multi-year lows of around $75 per barrel, down from $107 per barrel in June.

“A shock of that magnitude could be sufficient to trigger a broader high-yield market default cycle, if materialised,” warn Deutsche strategists Oleg Melentyev and Daniel Sorid in their report.

Five years ago at the beginning of what has become known as the US shale oil revolution, drillers started to load up on debt to fund their operations and acquire new acreage as vast areas of North America started to open up for exploration.............................
http://www.telegraph.co.uk/finance/newsb...waits.html

Boon san

According to your quoted report, the source is JP Morgan:

According to research from JP Morgan Asset Management, of the 12 largest shale oil basins in the US, 80pc are barely profitable, with prices of oil below $80 per barrel. More worrying is that these projections don’t include interest payments on debt made by shale producers.

ISIS is created and supported by Israel and the Americans, their equipment are all US made. They had it's roots in the free syrian army. You go back 2-3 years ago the west were supporting FSA giving toyotas and military aid to topple Assad regime.

After bin ladin there's no more monster in the world to battle, no need for homeland security agency or billions to budget for defense so they created this new monster to come bite them so they can keep getting billions and oil prices will remain high from these conflicts.

http://www.pri.org/stories/2014-04-01/on...nd-taliban

http://www.thegatewaypundit.com/2014/09/...taxpayers/

even the russians admit to the oil conspiracy

http://www.theguardian.com/world/2014/no...ctions-g20