April

[mkarpoff]

What are your thoughts about the Saudi's being able to ramp up enough production in April to knock the price down into the low to mid 20s?

[dan_s]

Saudi Arabia has NEVER produced 12 million barrels of crude oil per day. That is the number that they say they can produce, but they've never done it.

What they can do is sell more oil from storage for a few months. They have lots of storage all over the world. Obviously, there is a limit to how much more that they can sell than they are producing because eventually storage will be drained. My take is that MBS got pissed when Russia pulled out of the production quota that they had in place. This game they are playing will get very expensive.

It will knock down U.S. production and global exploration. It will also push a lot of OPEC cartel members "over the cliff".

Trump is very smart to buy cheap oil while Saudi Arabia and Russia are willing to give it away.

[mkarpoff]

A note of thanks Dan: Even though you may not have all the answers, I appreciate your rapid responses to our questions and concerns.