Article From Bloomberg: OPEC gambles that US shale’s golden age is over

I have not read the full article, but just the title alone sounds way off.  Firstly, I really believe that OPEC and non-OPEC countries are working together to balance world oil.  Not working together just has one result:  mutual destruction.

a screenshot of a cell phone: Balanced Market?

Secondly, an increase in world oil means that the Aramco IPO (launched this month) will tank.  Seems to me that a lower oil price will convey less profits to the financial markets.  If Aramco stock starts to tank right after it is issued because of increase oil production, investors will be furious.  They will scream foul:  “how could you just take the money and run?”.

Lastly, does anyone think that fracking is going away anytime soon?  As it is, Qatar is out of OPEC and the Saudis have hinted they want out too, sooner or later.  The cards on the table are saying the US will soon be the new Saudi Arabia.

Here is a link to the full article.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s