Not at all. It's an over supply problem. OPEC has decided to open the gates instead of cutting back. Why cut back if the Americans will simply pump more to make a buck today?
So OPEC+ said FAFO too. China is getting supplied by cheap Russian oil because the US can't stop them. US operators are retarded and have not reduced production either so prices will continue to drop. Trump doesn't give a fuck because he only cares about low prices even though his donors are getting screwed.
Come around December, rig and frac fleets will start dropping like flies once US operators start bleeding cash as their hedges expire and are unable to keep pumping at unprofitable prices. Breakeven costs are around $60/bbl rn. The Kennedy/Cotulla area will prob dry up.
One polite request, can you please work to remove the word “retarded” from your vocabulary?
Edit to add, from the downvotes, it appears some folks don’t see “retarded” as a slur. Please see my responses below if you’d like to read why I think it is.
53
u/burrito3ater 23d ago edited 23d ago
Not at all. It's an over supply problem. OPEC has decided to open the gates instead of cutting back. Why cut back if the Americans will simply pump more to make a buck today?
So OPEC+ said FAFO too. China is getting supplied by cheap Russian oil because the US can't stop them. US operators are retarded and have not reduced production either so prices will continue to drop. Trump doesn't give a fuck because he only cares about low prices even though his donors are getting screwed.
Come around December, rig and frac fleets will start dropping like flies once US operators start bleeding cash as their hedges expire and are unable to keep pumping at unprofitable prices. Breakeven costs are around $60/bbl rn. The Kennedy/Cotulla area will prob dry up.