The sudden declines in production illustrates the fatal flaw in the shale business model.
“Largest demand shock the oil market has suffered since the global financial crisis, and the most sudden since the Sept. 11 attacks.”
How the US shale boom changed the equation. If the attacks on Saudi oil facilities had occurred in 2007, it would have caused chaos in the US economy.
Just what the crude oil market needs.
But look how the bonds got manipulated up 24% in one minute at the close.
Whiff of short-term capitulation. But crude oil fundamentals not promising.
Investors buckled, but the country’s plight is only getting worse.
The chart shows what a truly relentless glut looks like.
Oil Soars as Saudi Energy Minister Uses Oldest Trick: Talking his Book.