Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Effective Collaboration - Team Research for Better Returns: -- Ignore unavailable to you. Want to Upgrade?

To: gcrispin who wrote (3932)	11/30/2014 9:23:28 AM
From: bruwin	Read Replies (1) \| Respond to of 8255

There's no doubt, gcrispin, (IMO anyway), that you put a lot of thought into the positions and views that you take. With regard to your observation .... "Since oil is sold in dollars and their costs are in local currency, the strength of the dollar has lessened the pain of the decrease in the price of oil." .... ..... I thought that the following article and chart may be of interest. As one can see, there is the consideration that a country has with regard to the "Break Even Price" at which its economy balances its books. Of course, the Saudis, Qatar, Kuwait and the UAE, due to their financial reserves, could hold out longer with regard to low oil prices than others, but it still becomes a matter of time, for all concerned, as financial reserves fall while oil prices and its revenue remains low :- ======================================================================= Cracks are surfacing within the world’s largest oil cartel as the 12-nation group considers supporting the oil price of letting it fall even further. Many of the major Gulf producers, Saudi Arabia, Qatar, Kuwait, and the UAE, have large financial surpluses to survive low oil prices. The others don't, and rely on oil revenues month-to-month. Less cash-cushioned members such as Nigeria, Venezuela, and Iran- the so-called price hawks - are pushing for a cut. “I think in the end the Saudis and the Gulf states will hold sway- I doubt there will be a cut in production - I think the price will continue to go down and we’ll probably see a floor somewhere around $65-70 per barrel,” Amir Handjani, energy expert and managing director of PT Capital, told RT. Each country has a different “break-even” oil price at which their economy balances its books. Kuwait, for example, can balance its budget if oil prices fall below $80 per barrel. Iran needs oil prices at $140 per barrel to balance its budget. “OPEC is not exactly a monolithic organization- its countries have varying interests and histories,” Adrian Salbuchi, an international politics analyst, told RT. Cutting production would help curb 4-year low oil prices, which fell below $76 per barrel on Thursday. Low prices have been triggered by an oversupply created by increased US production and waning demand from China and Europe. RT’s correspondent Murad Gazdiev spoke with OPEC ministers before they went into closed door meetings. ======================================================================= Further to your DAL holdings, I thought you may also be interested to listen to Charlie Rose's interview with Richard Anderson, the CEO of DELTA Airlines. The interview with Anderson starts off at about the 28:24 minute mark in the attached link, after his interview with the parents of Michael Brown. It seems that DELTA made a smart move a while ago by buying their own Refinery, when such a complex was going cheap, and thereby saved themselves a lot of "grief" and hedging costs when it came to the purchase of jet fuel .... charlierose.com