The curve is huge, I'm getting a little scared. How are you holding up?

[Lovinglifeinaustin]

The Houston economy is still very oil dependent. The price of west Texas oil was 27.10 a barrel on Friday. The break even price for Texas producers is the 50-60 dollar range Russia and Saudi Arabia are dumping oil on the market in effort to put all the small and medium us oil producers out of business and make the us again dependent on imports. This is getting no press coverage or any action from Washington

The Saudi’s efforts are intended to hurt the Russians for not playing ball and cutting back production with the other opec nations. It will hurt Russia’s economy much more than the US. Houston and other places defendant on oil will suffer. Hopefully that suffering will be short lived. I’m guessing that Russia will give in soon.

[pumpernickel]

The Saudi’s efforts are intended to hurt the Russians for not playing ball and cutting back production with the other opec nations. It will hurt Russia’s economy much more than the US. Houston and other places defendant on oil will suffer. Hopefully that suffering will be short lived. I’m guessing that Russia will give in soon.

Russians rather die than cave. Houston's economy will suffer greatly.

[Lovinglifeinaustin]

Russians rather die than cave. Houston's economy will suffer greatly.

No doubt that Houston will suffer. But I humbly disagree with your assessment of the Russians.

https://www.wsj.com/articles/for-rus...oes-1441215966

[Ben Rhimene]

Saudis to cave first because oil funds their social welfare programs. Saudi barrels already being turned aside. Russians supply mainly to Europe so less concerned about stranded barrels. Permian small players, wildcatters etc have started to shut in because price is below their cost to produce. The small will get extinguished while those larger have financial resources to tough out demand destruction caused by COVID-19. Ultimately OPEC & Russia will balance it out in thr $50 per barrel area but not until lots of permanent damage to many economies. After all, they have to wait another month or 2 in order to save face.

[Lovinglifeinaustin]

Saudis to cave first because oil funds their social welfare programs. Saudi barrels already being turned aside. Russians supply mainly to Europe so less concerned about stranded barrels. Permian small players, wildcatters etc have started to shut in because price is below their cost to produce. The small will get extinguished while those larger have financial resources to tough out demand destruction caused by COVID-19. Ultimately OPEC & Russia will balance it out in thr $50 per barrel area but not until lots of permanent damage to many economies. After all, they have to wait another month or 2 in order to save face.

This is all very possible. Both Saudi and Russian economies rely heavily on oil revenue. Saudi’s opec friends will be hurt and may put sufficient pressure on the crown prince to blink first. But he’s a megalomaniac and may not care, either for his own country’s economy, or those of his neighbors. I still bet on Putin blinking first.

[Ben Rhimene]

I still bet on Putin blinking first.

Also quite possible...we should start a pool!

Supposedly some of the smaller OPEC members are calling for an emergency session.

On less sunny news, automakers have recently announced extensions for plant shutdowns, plus salary reductions and furloughs. Heard it on my fave car program. Some more pessimistic than others in terms of re-start dates.

Not surprising I guess, Rust Belt getting hammered and daily numbers keep getting worse.

[Anna Nikkole]

I'd rather pay big money at the pump and know my fellow Americans are thriving. The economy was starting to look so good.

As a provider (I can only speak for myself) when I work, right now there is not a huge difference in income. Maybe because the AMP's are closed? Strip clubs closed? Whatever the case, just like the spike in + cases what goes up must come down. And I for one am afraid for the next year. I'm also a realist, and very much an over thinker. I'm a little nervous.