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Junk Bond Oil Slick

Posted on January 27, 2015

oil-slick

By Wolf Richter Every rally in crude oil since June turned out to be a pathetic sucker rally. On Friday, West Texas Intermediate fell over 2% to $45.32 a barrel, back where it had been on January 12, annihilating most of the 12% rally in between. WTI is now 58% below the June peak. “If prices […]

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Oil Slick for Silly Investors

Posted on January 13, 2015

By Wolf Richter Wall Street spent years hyping, propagating, and funding the oil and gas drilling boom in the US. It handled the bonds and loans issued by often junk-rated companies. It instigated the waves of mergers & acquisitions, profiting every step along the way – advisory fees, bridge loans, syndication of loans, underwriting of […]

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Oil Price: “No Rebound”

Posted on January 13, 2015

ABU DHABI, Jan 13: OPEC won’t change its oil production strategy and any sudden rebound of prices is unlikely, United Arab Emirates oil minister Suhail bin Mohammed al-Mazroui said on Tuesday. Mazroui was speaking at an energy conference in Abu Dhabi as Brent crude oil dropped into the $46 a barrel area, almost a six-year […]

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Oil Bust: “Sell North Dakota; Buy Cleveland.”

Posted on January 7, 2015

Brent crude oil prices fell below $50 a barrel for the first time since May 2009 on Wednesday as global business growth slowed to its weakest in a year, and analysts said a growing supply glut meant more falls were likely. The pace of global business growth eased to its weakest rate in over a […]

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Oil Patch Bust — The Leveraged Disaster Has Begun.

Posted on January 6, 2015

By Harris Kupperman What is the senior debt on a shale play that needs $100 oil to be profitable worth? With oil at $51, it’s worth roughly zero. What is the equity worth? Even less. What is the junk debt worth? Somewhere in the middle. The first epiphany in the shale patch will soon be […]

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Oil Rigs Shutting Down

Posted on January 6, 2015

U.S. oil drillers laid down the most rigs in the fourth quarter since 2009. And things are about to get much worse. The rig count fell by 93 in the three months through Dec. 26, and lost another 17 last week, Baker Hughes Inc data show. About 200 more will be idled over the next […]

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California’s Shale Oil Goes Down the Drain

Written by Gary North on May 27, 2014

We hear a lot about shale oil. We heard a lot about the Monerray discovery. It was huge. It was billions of barrels. It just got downgraded by 96%. Poof! Here is the story from Chris Martenson. Just today, we learned that the EIA has placed a hefty downward revision on its estimate of the […]

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