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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Graham Osborn who wrote (55854)	8/14/2015 11:24:40 PM
From: Spekulatius	2 Recommendations Recommended By geoffrey Wren Jurgis Bekepuris Respond to of 78700

The Saudi's have the low cost to lift crude profitably at $40/brl but they cannot sustain their economy doing so: bloomberg.com A 20% deficit of the GNP is huge and certainly not sustainable. They certainly have significant reserves but at this burn rate, they will go through them quickly I suggest. Pit cannot be their end game to supply the world with a surplus of cheap crude - their endgame is increase the cost of capital for energy producers in the long run (for fear of another price slump), which makes the next bull market for energy and crude longer and more sustainable perhaps.