Canadian dollar sinks below 88 cents as Saudis cut oil to $77

[HockeyIlliterate]

Originally Posted by nik-

Saudi deficit is more than double what they forecast. They predicted $39 billion ... it's actually $106 billion.

http://www.france24.com/en/20150408-...t-says-report/

They're entering the debt market instead of using their reserves.

Personally, I hope that no one subscribes to the Saudi debt offering...starve them out, if you will.

Besides, I thought that charging interest was against the Koran and Islamic law? Who is going to buy interest-free debt?

[Red]

Saudi Arabia has sent out the most powerful signal yet that oil prices are not set to rebound any time soon by abandoning its passive response to the world oil glut.
Instead of leaving its own production flat, it is boosting production quite sharply to claw back market share. On Tuesday, Saudi Arabia’s oil minister, Ali al-Naimi, revealed that the kingdom’s oil production in March was 10.3-million barrels a day – a record high. “Saudi Arabia is going for it,” Olivier Jakob of the Swiss energy consultancy PetroMatrix said on Wednesday as Brent crude fell by about 1.3 percent.



http://www.bnn.ca/News/2015/4/8/Saud...ket-share.aspx

[Bring_Back_Shantz]

Originally Posted by HockeyIlliterate

Personally, I hope that no one subscribes to the Saudi debt offering...starve them out, if you will.

Besides, I thought that charging interest was against the Koran and Islamic law? Who is going to buy interest-free debt?

Pretty sure the guys who are borrowing money (the Saudis) aren't the ones charging interest.

[Bill Bumface]

Originally Posted by Bring_Back_Shantz

Pretty sure the guys who are borrowing money (the Saudis) aren't the ones charging interest.

Why not? If it's good enough for the Swiss...

http://www.ft.com/cms/s/0/35ddc68e-d...#axzz3WkmjKEI0

[HockeyIlliterate]

Originally Posted by Bring_Back_Shantz

Pretty sure the guys who are borrowing money (the Saudis) aren't the ones charging interest.

True...I wrote my thought incorrectly.

But if Islamic law forbids the charging of interest (and thus, presumably the paying of interest as well), I'm curious how the Saudi debt going to be structured and if it will be competitive with other government bonds.

[Bring_Back_Shantz]

Originally Posted by HockeyIlliterate

True...I wrote my thought incorrectly.

But if Islamic law forbids the charging of interest (and thus, presumably the paying of interest as well), I'm curious how the Saudi debt going to be structured and if it will be competitive with other government bonds.

I think that's a pretty bold assumption.
Besides, there are plenty of ways around it, always has been. If there wasn't there wouldn't be a banking industry in Saudi Arabia, among other countries.

[red sky]

No discussion on this massive deal?

http://www.cbc.ca/news/business/shel...-70b-1.3024386

Is this the start of some larger consolidations on the E&P side?

[Harry Lime]

“People pay attention to what Goldman says,” said Phil Flynn, senior market analyst at the Price Futures Group in Chicago.


The bank cut 2016 estimates for WTI to $45 a barrel, from a May projection of $57. It also reduced its 2016 Brent crude prediction to $49.50 a barrel, from $62.


“The oil market is even more oversupplied than we had expected and we now forecast this surplus to persist in 2016,” Goldman analysts including Damien Courvalin wrote in the report. “We continue to view U.S. shale as the likely near-term source of supply adjustment.”

Basically, they are saying that the expected slight rise in the value of oil for 2016 is very unlikely to happen. The opening of Iran to trade and any refinery issues could lead to even lower prices. This isn't going away soon.

http://www.thestar.com/business/2015...ces-lower.html

Edit : Sorry, didn't see that it was already being discussed in the layoffs thread.

[T@T]

Originally Posted by Harry Lime

Basically, they are saying that the expected slight rise in the value of oil for 2016 is very unlikely to happen. The opening of Iran to trade and any refinery issues could lead to even lower prices. This isn't going away soon.

http://www.thestar.com/business/2015...ces-lower.html

Edit : Sorry, didn't see that it was already being discussed in the layoffs thread.

Obama is a idiot for signing the Iran agreement.

Iran:

1) We police ourselves thank you
2) No, you can't have your innocent US citizens back
3) We have the 3rd largest oil reserves in the world, by allowing our oil to flow we give thanks for letting us help bankrupt a bunch of western oil companies.
4) We will be very wealthy again, we can now afford russian tech for missile delivery and fund terrorism towards the west.
5) Israel will be a glass parking lot in 10 years.

[Looch City]

We get it T@T, you hate Iran.

[T@T]

Originally Posted by Iggy City

We get it T@T, you hate Iran.

Call me crazy but typically I'm not a fan of someone who wants me dead!

[Kavvy]

One analyst calling for $130 oil by 2017 (article states within a year)! He admits he is against the grain on this one, but according to the article, he was one of the first to call the downfall of oil, before it happen

http://www.bnn.ca/News/2015/11/10/Oi...s-analyst.aspx


would be nice, even though all the jobs won't return, it should would make things easy again.

Edit: the video provides a little additional insight of his point of view

[chemgear]

Holy . . . remember when our dollar was actually worth 88 cents?!

[BigNumbers]

I'd blow a Sheik for US$77 WTI...

[Kavvy]

Originally Posted by chemgear

Holy . . . remember when our dollar was actually worth 88 cents?!

Watch the video. I don't know nearly enough to say he is right or wrong, but he is able to sell his point of view well