Quote:
Originally Posted by Leeman4Gilmour
Yah, that's probably why I haven't come across any similar sentiments
I am positive those running Saudi oil are smarter than me, but the math doesn't align with all the reasons for them continuing to max production. The two predominant reasons are;
1) They want to knock out high cost producers to get market share
2) They don't believe the market for oil is long for this world and they want to get what they can.
Neither of those reasons make long term sense to me. Producing 10MM bbls/day at $100 is waaaayyy better than producing 12MM bbls/day at $40 (very rough numbers)
So, I came up with my theory
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I don't think your idea is wrong, just that it doesn't seem to match what they're doing. Of course, if they came out and announced they were buying Continental Resources (or whatever) the price of assets (and maybe oil itself) would jump a lot, so maybe they are doing stuff like that, just secretly through intermediaries.
If I could control the price of oil I would certainly take advantage of my ability to do so by buying oil reserves low and selling high.