It’s a metaphorical chip.
What ar your feelings on that big oil is the main thing propping up investment for “alternative energy?”
Free government money. You think big oil will pass up on that?
Forms of “energy” that are so “energy efficient” that they cannot make money, so the government pays companies to implement them.
Speak up son, we can’t hear you.
Pitiful.
you seem triggered. i feel like you are having an argument in your head with an imaginary person and then just typing one half of it here
Well shit, if I tried to have a conversation with the actual you, instead of the learned imaginary substitute I am engaging, I would be a bimbo.
i hear ya man its a tough world
Not so tough.
for some
You get three bimbo stars for that.
Yeesh…
is everything ok?
I mean for me yeah. I’m shorting the shit out of oil.
My thesis, aside from technical analysis, is that reason will prevail. Even these monsters can’t afford to let the world go broke. Specially since Trump increased the amount of scrutiny the public at large places on them. They can’t just do whatever.
Well they can. But my bet is they won’t.
And if they do, we are still in a recession the proportion of which will not be fully understood for years. So that alone.
Look, essencially the thing is this. $120 is a grotesquely inflated price for oil. It used to be possible before fracking was perfected, but since then the US has had the ability to limit the inflation that the likes of OPEC+ can cause to about $60. The only reason it is this expensive now is abhorrent circumstances, first that these sanctions for a pointless pet war of the crazies in Europe are cutting the world oil supply by a significant proportion, and second that in a recession like this, any excuse is a good excuse to flood anything but conventional stocks with money. Neither of those two things can realistically last. Europe is already giving some faint signals that it has had enough. If this thing is hitting the US hard, it is ripping the EU a new asshole. China too. So nobody can really afford this for long. The other point, about money seeking a safe haven, eventually oil will not sustain that category, and money will flood back out. It will flood into the normal things money floods into when a recession happens, ulta-boring blue chip companies that sell the most essencial, cheap and irreplaceable goods and have solid corporate structures with healthy balance sheets. Also bonds, but there is a limit to how much money bonds can absorb.
So it’s not a question of if oil will collapse, but when oil will collapse.
What you have to remember with oil is that, without OPEC+ and company agreeing on production outputs, the actual price of oil with current supplies would be like $10 or something ridiculous like that. The cost of extraction is not really that high. Oil is immensely cost effective.
So $60 is already about a 500% exageration of the price, due to artificial supply constraints. Like they do with diamonds. So oil is not like other securities where you can just sort of assume they will go up in a semi regular trend indefinitely. It is inherently jagged. And basically by definition inflated.
There was a point where Saudi Arabia and Russia went into a miniature oil price cutting war, and I shit you not, the price for a cash future on WTI oil (cash future meaning you can take that future to WTI and they give you a barrel of oil) went below 0. I don’t even understand that, like they had to pay you to take the barrel. But this happened.
Lol but even then you can’t just borrow to the hilt and buy every barrel of oil you can get your hands on with the happy knowledge that it will eventually hit its $60 equilibrium again and you will be ultramegarich. Because, for all you know, Russia and Saudi Arabia never work it out and $10 oil becomes the new normal. The industry costs support it.
The plain fact is that the US Dollar is weakening rapidly; and this is causing turmoil throughout the world.
Now foreign nations, markets, and banks are looking for alternatives. Some of them will force alternatives.
Democrats still have a bone to pick with the Oil Industry since the Bush Dynasty; they want revenge and now they’re getting it.
Meanwhile average Americans pay a steep price for these vendettas and massive incompetence.