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Misc Stock Market

At 9:50 AM, Dow futures were at the session low of 23,560. Just 30 minutes later, it had risen to 24,497, a 937 point rise!

Now it has fallen back some but is holding ok.
 
Webberweather53 said:
Today's big hits on the market are almost entirely due to a d*** measuring contest between Saudi Arabia and Russia w/ an assist from coronavirus. Knowing the ruthlessness of OPEC and Putin, don't expect the price war to end anytime soon.
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Russia can afford to have a price war longer than Saudi’s Arabia can. Who blinks first?
 
So if I’m understanding this correctly here, we’re going to see who can produce oil for free (basically) the longest? My money is on ??
 
Isn't it interesting how so many things converge at the same time: Coronavirus, OPEC disintegration, NK shooting missiles, Turkey/Syria/Russia conflict, locust plagues, new round of migrants heading toward the EU, etc.?

All we need now is an asteroid, a supervolcano eruption, a nuclear plant meltdown, or some kind of other natural disaster.
 
Jimmy Hypocracy said:
So if I’m understanding this correctly here, we’re going to see who can produce oil for free (basically) the longest? My money is on ??
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Exactly. I think the end game is to squeeze as many competitors out of the market as possible, including other OPEC countries. The Saudis can afford to play this game longer than the Russians—or st least that’s what they are betting.
 
ForsythSnow said:
Why would you bank on Saudi Arabia when their GDP relies more on oil than Russia?
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I’m assuming they have more wealth on hand than Russia. I doubt they want to take that hit though. I’m not sure Russia cares one way or the other. Who knows? Who can stick their chest out the furthest? Stay tuned!
 
Personally, I believe government bailouts need to end. Such bailouts prevent the market from doing what the market needs to do—which is return to balance. We can’t just keep bailing out everyone every time the market tries to correct.
 
Rain Cold said:
Isn't it interesting how so many things converge at the same time: Coronavirus, OPEC disintegration, NK shooting missiles, Turkey/Syria/Russia conflict, locust plagues, new round of migrants heading toward the EU, etc.?

All we need now is an asteroid, a supervolcano eruption, a nuclear plant meltdown, or some kind of other natural disaster.
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1 inch of snow in NC. ?
 
Poimen said:
Personally, I believe government bailouts need to end. Such bailouts prevent the market from doing what the market needs to do—which is return to balance. We can’t just keep bailing out everyone every time the market tries to correct.
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But the OPEC counties (and Russia) directly own or support their oil production. They can afford to take loses for long periods. Our producers need to be profitable to survive. If OPEC and Russia was to put our production out of service or worse come in and buy up the producers when they're down, they could then (again) use oil as leverage for their policies.
 
FallsLake said:
But the OPEC counties (and Russia) directly own or support their oil production. They can afford to take loses for long periods. Our producers need to be profitable to survive. If OPEC and Russia was to put our production out of service or worse come in and buy up the producers when they're down, they could then (again) use oil as leverage for their policies.
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Here's the problem though....bailouts allow for business that should exist to continue operation. An unprofitable business has no reason to innovate or do things better if they're having to rely on artificial price discovery or frequent injections of stimulus for support. The moral hazard in our economy is off the charts because of the continued bailouts, liquidity injections, and artificial monetary support that has existed for years now. It is not sustainable long-term, and it will eventually lead to the collapse of the economy.
 
As they cut prices, Saudi officials are now preparing to ramp up the kingdom’s oil output to compensate for the lost revenue caused by lower prices.
 
If you are Russia, it’s worth it for you to take a three-month price hit to see if you can knock out U.S. oil exports,” said Amy Myers Jaffe, an oil and Middle East expert at the Council on Foreign Relations. “They might be correct for three months but the shale never gets destroyed.”

She said that the divergence in Saudi and Russian strategies “signals that the relationship between Saudi Arabia and Russia is on the skids.
 
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