(03-19-2020, 11:02 AM)vbin Wrote: I think rally coming to short cap. Big caps will take a hit or will be shorted on a next down day. Other than GD all my purchases are green from yesterday, good for a change.
@EricL I think you should have stayed in oxy as well. Saudis and Russians can't survive $25 oil either.
I'll never tire of this debate even if I'm out.
According to Aramco filings it costs SA a little under $10bbl to put oil on a ship. It's their only real income so that's not their goal. Russian oil minister said he was cool with $25 long-term well before it happened. US announcing they would fill up their strategic reserve accomplished absolutely nothing. This is about as bad as it can possibly get because there is no hope for normal demand until later this year if we are lucky. SA and Russia will have to cut production deep to get oil back to $35 and that still buries the US frackers. So I am on Eric's side if that wasn't clear lol. If the majors cut dividends as they should, I might get some skin back in the game.