Hey yo, what is going on with the viewers
of the tubbbeeee!
If you didn’t mean to land on this channel,
do not click away, because you just entered
the crypto channel, that will surprise you
when you least expect it, like at a red light….you
know our American Health Care!
It’s time for Chico Crypto!
First, if you saw this sweet sweater, I wanna
thanks to Upper Park Clothing here in Chico,
Cali, for the gear care package.
Gotta support local, in times like these,
and these guys are Chico, born and raised,
link for their gear in the description, and
they take bitcoin and crypto for payment...by
the way.
So to begin... whaddyaknow!
Chico called it spot on once again….Oil
issss crashing!!!!
Black gold is turning to black dust.
Pulling out the 5 day chart, Oil has sunk
from above the 18 dollar mark at close last
week, to off the charts, basically nothing...dollars,
and even cents on some exchanges
What Did I post on April 3rd 2 weeks ago?
My Plan B, was this….short OIL and Buy BTC.
And pulling out the oil price chart since
then, Booya, called the oil peak, at 29 on
4/3….and that trade, was possibly the best
call I have made in the history of my dive
into the world of financials.
So what the hell is going on?
I thought the Saudis, Russia, and the US came
to a deal to cut production?
And how will the destruction of the oil markets
affect everything else from stonks to BTC?
Well first oil prices, they have fallen to
the lowest levels ever….going all the way
back to 1946...even before the creation of
the petrodollar….This price collapse, initially
was fueled by a price war, between OPEC producing
nations, including Saudia Arabia, Russia and
the United States.
Each country was producing at levels pre-corona
crisis, right in the middle of the crisis,
meaning supply was way higher than demand
for the 1st quarter of 2020.
Well finally the oil producing roundtable
players, came to an agreement to cut supply.
And Stupid, let me tell you STUPID, media
players were calling to an end of the price
war...Fortune Magazine….”Saudi-Russia
oil price war ends with OPEC+ deal to slash
output, but prices stay near lows”....in
the article they say….
“The world’s top oil producers pulled
off a historic deal to cut global petroleum
output by nearly a 10th, putting an end to
the devastating price war that brought the
energy industry to its knees”
Well it’s knees was at 20 dollars a barrel...I
guess the energy industry is flat on it’s
back now, with a look of fear, shock, and
maybe a shed of a tear or two.
And you know exactly why this is?
Even the top government officials here in
the US, focused on the OIL and energy sector,
didn’t see this freaking coming.
Dan Brillete, US Energy Secretary, spoke to
interviewers, after the historic OIL deal
on April 15th about prices, and the markets.
Let’s hear what he had to say now.
Ya, we are to that single digit level folks.
And the US officials didn't see this coming,
not even the Trumpster himself or his energy
advisors.
But of course, the Don decided to take credit
for the historic deal “The big Oil Deal
with OPEC Plus is done.
This will save hundreds of thousands of energy
jobs in the United States.
I would like to thank and congratulate President
Putin of Russia and King Salman of Saudi Arabia.
I just spoke to them from the Oval Office.
Great deal for all!”
Well at these prices, it’s not going to
save jack mcsqooty booty…..so because of
the “DEAL” aka the art of the deal…..US
oil production now has to be cut almost 2
million barrels per day up past 2021 as all
nations agreed to cut some including the US…...and
guess who is being cut out of all the deals
right now?
The United States...this Reutres areticle
posted yesterday, tells it like it is…”Saudi
Arabia gets physical with Russia in underground
oil bout”
From the article...
“Beyond the cooperative statements the fight
is still going on,” a source at a trading
firm told Reuters, adding that Saudi Arabia’s
official selling prices (OSPs) signalled that
the kingdom was targeting the Asian market,
where demand remains relatively resilient
during a global slowdown.
What did they target?
Saudi Arabia’s state oil company Saudi Aramco
cut its selling prices to Asia in May by $3
to $5 across all its grades, marking a second
month of drastic cuts.
And other OPEC members: Iraq, the United Arab
Emirates and Kuwait slashed May prices on
crude destined for the Asian markets.
And guess what?
Russia has relied on Asian markets as a destination
for its oil output since launching the 1.6
million barrel per day ESPO pipeline.
This connects Russian fields to Asian markets
through the port of Kozmino….uh oh, Vlad…..what
else is coming at you?
Saudi Arabia is also gaining ground in Europe,
Russia’s backyard for oil and gas exports.
This month alone….barrell sales to Europe,
have exploded to levels not seen since the
last Oil war in 2016…..
But back to the Reuters article they say “In
an effort to further entice buyers, Aramco
has offered refiners in Asia and Europe the
option to defer payments for crude cargo deliveries
by up to 90 days, Reuters reported.Russia’s
main advantage in the physical market fight
with Saudi Arabia is its sprawling pipeline
network, helping it place oil at cheaper rates
compared to its rival which has to find tankers
and pay for transportation,
“Russian oil fields (are) connected to refineries
in Europe and Asia and oil companies have
long-term contracts with them,” “Unlike
Saudi Arabia it is not subject to freight
rates and vessel availability.”...traders
told Reutres
So what is the commone theme in all these
deals?
It’s Russia, Saudia Arabie, or OPEC members...there
is no mention of the US, cutting deals, gaining
market share, or anything like that...WHY?
We can’t produce and sell at these levels,
it’s impossible…
And that is why you see all outlets covering
the news in the US, they know it’s huge,
they know it’s dangerous...Bloomberg posted
this article “Oil Plunges Below $5 With
Traders Fleeing Expiring Contract” which
tell us oh so much about the pain the US is
in….
From the article
“There is little to prevent the physical
market from the further acute downside path
over the near term,” said Michael Tran,
managing director of global energy strategy
at RBC Capital Markets.
“Refiners are rejecting barrels at a historic
pace and with U.S. storage levels sprinting
to the brim, market forces will inflict further
pain until either we hit rock bottom, or COVID
clears, whichever comes first, but it looks
like the former.”
So the US, can’t get rid of their freaking
OIL boyz...More from the article...There are
signs of weakness everywhere.
Buyers in Texas are offering as little as
$2 a barrel for some oil streams, raising
the possibility that producers may soon have
to pay to have crude taken off their hands.
The spread between the nearest two contracts
for the U.S. benchmark has fallen to its weakest
level on record.
In Asia, bankers are increasingly reluctant
to give commodity traders the credit to survive
as lenders grow ever more fearful about the
risk of a catastrophic default”
So, if you guys have never heard of Cushing,
Oklahoma...you should.
It’s a key crude oil storage hub, for the
United States, as it’s the physical delivery
point for West Texas Intermediate oil futures
contracts.
Well since February, capacity has surged by
48 percent to 55 million barrels, which is
pushing 100 percent capacity, which is 76
million barrels.
And you would think, ok, the US is storing
its own crude OIL right, the stuff Oklahoma,
Texas, and other US states produced?
You are completely wrong….
We are taking in a bunch of Saudi oil too
for some reason??
Shipments have soared from an average of 366,000
barrels per day in February to 829,540 barrels
per day in March to 1.46 million barrels per
day in the first two weeks of April.
That means over 30 million barrels in a month….nothing
like before...
What is going on?
Why are we helping the Saudi’s when, OIL
producing companies here in the states, can’t
get a break…
Well Trump's art of the “deal” was a complete
and utter failure.
We bought OIL and increased imports, when
hands down, it was the worst decision, our
administration has ever made.
They thought prices, would rebound for some
gash dang reason, and buying at the low prices
was a chance in a lifetime…..WRONG!
You could of got it for a loooot cheaper
So, something is not right, something is not
correct in the markets.
OIL is the leading asset, it’s what gives
the petrodollar, it’s power, and it should
definitely have an effect on the other markets,
like STONKS!
I mean the oil price and indicator of the
health of global supply chains of which corporate
consumerism relies on.
Which can be seen in March, you know, OIL
got hit first, and went down, followed by
the stock market...the two were correlated
like they should be.
But now all the sudden, Stocks are hanging
on….
while OIL has crashed to basically nothing?
That has me scratching my head?
So my friends, tread lightly, tread softly...and
be aware of all markets, crypto included.
I know I said buy BTC, because that is something
I am always doing….Short term, a crash in
Oil will ripple into all markets, from real
estate, stonks, to the USD and it will hit
bitcoin, ethereum, and all of the crypto markets.
But like I have said, for bitcoin to rise,
it needs to be like a pheonix, and rise from
the ashes of finance 1.0.
Cheers, I’ll see you next time!
