On Monday, we introduced you to "Steve."
Steve hates two things, as far as we can tell: Arab nations ("sand people" as he calls them) and monkfish.
We're not entirely sure what monkfish ever did to Steve (maybe he'll regale us with the story) but when it comes to the Saudis, it seems likely that the problem lies in Riyadh's ability to move oil prices around.
See, Steve doesn't think the Saudis have any influence on prices. Here's some in-depth analysis he sent in yesterday:
Saudi Arabia is finished, its a country that's as dead as deep fried monkfish. You can do all the wishthinking that you want, but you'll be much happier dealing with the mathematical reality. The psychotic, saudi sand people are finished.
Well, as ignorant as that made old Steve sound, idiots have an uncanny ability to accidentally set themselves up to be made to look even stupider, which is exactly what happened bright and early on Tuesday morning when the Saudis informed OPEC that the kingdom raised output to over 10m b/d in February, reversing 1/3 of the cuts made in January. Oil promptly plunged.
Now that in and of itself shows just how much this market cares about the Saudis. Put simply: when they
My,my aren’t we testy. The House of Saud is definitely in trouble in the long run, BUT those “sand people” have a few more barrels left in the ground and will be heard from quite loudly when they throw more oil at the shale boys (wonder who will last longer at much lower prices). Will they blow the market up, MAYBE and one thing is for SURE they won’t go down without a fight. Just ask the Shia and the rest of those “sand people”.
I think what we should be asking is whether Steve and Sharon know each other.
[…] oil was higher following Tuesday afternoon’s API data which, as noted here, showed a surprise draw. Meanwhile, the dollar meandered lower along with […]