economy

Daily Economy Thread

Started by Economy with 528 replies so far

3 minutes ago, Woolfsmck said:

Yepper, US shale is helping regulate and balance the oil markets.

Bad news for those stocks in the red i have with Cenovus. 

 

I bought a sh*t load at the recent collapse to $14/share ($4000 worth) but will only rebound with oil recovery

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Just now, Economy said:

Bad news for those stocks in the red i have with Cenovus. 

 

I bought a sh*t load at the recent collapse to $14/share ($4000 worth) but will only rebound with oil recovery

Oil is political now and strategic...Normal supply and demand influence is greatly exajerated by non-economic events.

The North Korea issue shouldn't matter to the oil market, but it will have an impact if the conflict escalates


like a cat in a sil, I watch life, moving&still, proceed across my face, I leave no trace.My words give a clue,look inside to see whats true

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Just now, Woolfsmck said:

Oil is political now and strategic...Normal supply and demand influence is greatly exajerated by non-economic events.

The North Korea issue shouldn't matter to the oil market, but it will have an impact if the conflict escalates

Yeah...

 

However US Shale does have one dynamic agaisnt it...

 

Cost of production changes wildly depending on growth or contraction

 

There is already cost inflation setting in in the permian as land prices skyrocket, labor costs rise due to shortage, and service companies that supply equipment are starting to raise prices again

 

This year price inflation for shale is expected to be moderate. Next year if industry remains in growth mode they expect cost inflation to eccelerate especially in the permian

 

That could put an eventual slow down in shale growth. Though it would still grow at least 200,000 to 400,000 barrels a day in a period of a year if prices remained above $50 i think

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