On Wall Street

[deltex1]

One moron predicts the shit pile on a Wall St will be three feet high. The other moron says the shit pile will be 11 feet high. The shit pile turns out to be eight feet high. The price of shit goes up. And so it goes......the latest being oil in storage.

 

[SassyIrishLass]

Russia may cooperate with OPEC, oil gets a lift on the news

 

[william the wie]

Russia may cooperate with OPEC, oil gets a lift on the news

I didn't reply to this thread on first alert because I don't want to be insulting to you but like D1 I very much do want to be insulting to the people on Wall Street:

Today I wrote puts on pipeline companies.

I was offered 130% annualized returns to write those puts.

Here's why the guys on the other side of my trade are dumber than dog squat:

If exploration companies can make Marginal costs at $30-40/bbl without pipelines then wells that need $10-13.34/bbl will be worth looking at when the pipelines reach those fields.

With Either more wells or less debt on existing wells output will increase.

Pipeline companies will be swimming in money because they get the same amount/bbl at $1-1,000/bbl.

This will create a virtuous cycle of ever cheaper energy since coal seams can be converted to low grade kerosene using 19th century technology as during the das light era. Planes need high test kerosene all other forms of transport can run on diesel fuel Natural gas or kerosene.

There is no long run bottom to energy.