Name one Private Company or elected official in high office who saw COVID-19 coming, correctly assessed its impact, and completely adjusted its' business model accordingly. Answer: Amazon... by default. And that's about it. Demand dropped at three times the rate of storage availability. And that is the story.
Pretty interesting to see how people realize giving away money is never fair.....hopefully after this complete debacle of gov intervention people will move more towards a free market....my fears are they ask for more abuse from the gov
Have to disagree. Even when Trump asked Saudis and Russians to cut production, US oil companies refused any commitment. Taxpayers should stop providing puts to fortune 500 companies. This is what is going to kill American Capitalism. Not Bernie.
The root of all this problem is that money is a protected form of free speech (as ruled by the supreme court). Bribery has been legalized.
The cost of an Oil barrel from Saudi fields is no where close to $40. It's closer to $8-$10 (That's production cost). They build their budget based on an average oil price of around $60, this is where the gap comes from. So for Saudi, selling Oil at $20 does not mean they are losing, it just means that they are having a larger budget deficit.
No, US producers agreed to cut production along with Russia and Saudi Arabia. https://www.wsj.com/articles/saudi-oil-stranded-in-supertankers-as-backlog-piles-up-11587478831 OPEC is debating production cuts that would go beyond the historic oil pact they agreed to with the U.S. and Russia
Not true. Your timelines are incorrect US producers were forced to by market forces last week. trump got the US producers together (same time as he asked Saudi and russia) came out of the meeting unable to convince them. US government should not encourage this behavior. In 2008 they told financial markets that we have puts for you at no cost. Now they are asking oil producers to be reckless