Oil price seen falling to $60 if OPEC does not cut output

[BlueKelah]

oil price down is GOOD for economy mah!

Why everyone soo panic?!

Down slowly is good but a big crash/correction is not so good, especially if US develops a "shale" crisis from their overinvestment in shale.

Those shorting oil stocks are probably jumping up and down with joy.

[specuvestor]

Actually you just need to buy transport value chain rather than do risky short... from the makers to the carriers.

[yewkim]

oil price down is GOOD for economy mah!

Why everyone soo panic?!

Yes, very good indeed, everthing cheap is good no need to panic, all will be out of jobs so got more time to come here to chat.LOL

If oil is down on low demand, very soon factory will close shop, and all got retrench. So what so good about cheap, if cheap also got no money to buy. hahaha.

Just look around, all recession alarm alert, so who need oil?

[yewkim]

Actually you just need to buy transport value chain rather than do risky short... from the makers to the carriers.

And what will happen if in the transport the lorry and truck drivers also refuse to start their engine, because all are waiting for oil to get cheaper?

What is deflation? It is the opposite of transportation? NO???

[Harvest Time]

Many theories about the low price oil.

Some say to bankrupt shale oil production companies, at this level, some will get hit.
http://www.ft.com/intl/cms/s/0/eda2b8a6-...z3KK7vIgo1

To punish Russia
http://americanfreepress.net/?p=20227


Exploration of shallow water oil fields
http://www.ogj.com/articles/2014/10/mexi...ssets.html
http://www.nationaljournal.com/energy/di...g-20140718
http://www.islandpacket.com/2014/09/01/3...d-for.html

[yewkim]

I read Hercules, a big company that support shallow water rig and retrenching worker, If at 70$ all those shallow rig are making money, then why hercules are retrenching worker?

http://www.houstonchronicle.com/business...867763.php

this news is just recent one dated 3rd November. If it is, then ours most oil n gas like Pacific R, and Ezion could be in for some rough ride.

Hercules is one of the Gulf's biggest shallow-water rig operators, Take notice.

[Harvest Time]

Sluggish demand for shallow-water jack-up rigs mirrors a decline among deep-water contractors, as in recent months a wave of new high-tech rigs have begun to elbow older models out of the market. That has pushed daily rates drillers charge to run rigs down by a third in recent months, as the supply of rigs overwhelms demand for them.



I think the issue is newer high tech rigs are coming have begun to elbow older models out of the market.

[yewkim]

I read Hercules, a big company that support shallow water rig and retrenching worker, If at 70$ all those shallow rig are making money, then why hercules are retrenching worker?

http://www.houstonchronicle.com/business...867763.php

this news is just recent one dated 3rd November. If it is, then ours most oil n gas like Pacific R, and Ezion could be in for some rough ride.

Hercules is one of the Gulf's biggest shallow-water rig operators, Take notice.

And that was when oil was higher, today oil is at 68$. Will that improve their retrenchment number ? Get out first , before it is too late for all oil n gas counter, It will not go down straight , but it will go down gradually till oil is at 60$ and lower.

[Harvest Time]

Hercules has 31 old oil rigs (1958 to 1982) and 5 new oil rigs (2 undelivered yet)


https://www.rigzone.com/data/results.asp?Manager_ID=555

Ship name, delivery year
Hercules 120 - 1958
Hercules 150 - 1979
Hercules 180 - 1980
Hercules 201 - 1982
Hercules 208 - 1980
Hercules 251 - 1978
Hercules 265 - 1978
Hercules Highlander - 2016
Hercules Resilience - 2013
Hercules Triumph - 2013
Perisai Pacific 101 - 2014
Perisai Pacific 102 - 2015



https://www.rigzone.com/data/offshore_dr...rcules_120


http://www.infield.com/rigs/perisai-paci...ckup-61344
http://www.infield.com/rigs/hercules-tri...ckup-61050

[Harvest Time]

Avoid ultra deep water oil and shale oil. Also need to be cautious on deep oil.