PRICES UP -- DOWN RATHER 1% AT 16.58.
JOINING US RIGHT NOW
FUTURES SENIOR MARKET
ANALYST PHIL FLYNN.
WHAT A DAY, PHIL, HOW
DOES IT LOOK TODAY?
PHIL: LOOKS A LOT BETTER
THAN YESTERDAY.
THAN YESTERDAY. SEEMS LIKE THE WORDS
FROM THE TRUMP
ADMINISTRATION ABOUT
ADMINISTRATION ABOUT POTENTIAL STIMULUS AND
ANGER AT THE
IRRESPONSIBILITY FROM
IRRESPONSIBILITY FROM SAUDI ARABIA FOR
STARTING THIS PRICE WAR
IS REALLY STARTING TO
HAVE RAMIFICATIONS.
HAVE RAMIFICATIONS. IN FACT, OVERNIGHT WE
HEARD REPORTS FROM THE
DEPARTMENT OF ENERGY WHO
BASICALLY CAME OUT AND
SAID, HEY, WHEN WE HAVE
STATE ACTORS TRYING TO
MANIPULATE THE GLOBAL
ENERGY MARKETS THIS
REALLY EMPHASIZES THE
WALL OF THE UNITED
STATES AS RELIABLE
SUPPLIER BECAUSE WHAT
SAUDI ARABIA DID AND
RUSSIA DID OVER THE
WEEKEND WAS NOT
RESPONSIBLE.
RESPONSIBLE. IT WAS CHILDISH, IT WAS
NOVEMBERS GOOD FOR THEM,
IT WAS NOT GOOD FOR THE
GLOBAL ECONOMY AND I
THINK IT’S TIME FOR THE
UNITED STATES TO STAND
UP AND SAY, HEY, ENOUGH
IS ENOUGH, YOU KNOW,
ENOUGH OF THIS MARKET
THAT MANIPULATION.
THAT MANIPULATION. SCOTT: SCOTT MARTIN.
I’M COMING BACK HOME,
BUDDY, TODAY, GET
EXCITED.
EXCITED. SEE YOU TOMORROW.
IN THE MEANTIME I’VE
BEEN CHECKING OUT GAS
PRICES AROUND THE AREA
OF NEW YORK HERE GIVEN
THAT WE HAD THE BIG
SELLOFF YESTERDAY, IT’S
RELATIVELY FRESH, I
AGREE, BUT, YES, DO YOU
THINK THAT THERE’S GOING
TO BE A MEDIUM IMPACT ON
PRICES THAT PUMPS
GASOLINE THAT’S SITTING
AT THE GAS STATION NEEDS
TO BE WORKED ON BEFORE
THEY NEED TO MAKE
ADJUSTMENT IN PRICES.
>> I THINK YOU NEED TO
REALIZE THAT PEOPLE IN
NEW YORK DON’T DRIVE
ANYWAY.
ANYWAY. SCOTT: THERE’S CARS.
PHIL: THEY’RE ALL CABS.
WE ARE SEEING -- TRIPLE
A REPORTING THAT IT’S
GOING TO FALL AND IT’LL
FALL A LOT FURTHER AND
NORMALLY THAT DOESN’T
HAPPEN THIS TIME OF
YEAR.
YEAR. THIS IS THE TIME OF YEAR
WE START BUILDING PRICES
AHEAD OF DRIVING SEASON
SO IN A WEIRD WAY THIS
WILL GIVE US A LITTLE
BIT OF A SHOT OF
ECONOMIC STIMULUS AT
LEAST SHORT-TERM.
LEAST SHORT-TERM. DAGEN: LOOKING AT PRICES
AT LEAST $35 A BARREL IN
TEXAS INTERMEDIATE, IT’S
DAGEN, BY THE WAY, DO
YOU THINK SMALL SHELL
PRODUCERS WILL NEED A
BAILOUT AND COME
KNOCKING?
KNOCKING? >> I THINK THERE’S TALK
ABOUT IT AND THE TRUMP
ADMINISTRATION IS
ADMINISTRATION IS LOOKING AT WAYS TO HELP
THEM OUT.
THEM OUT. SOME PRODUCERS DESERVE
TO GO OUT OF BUSINESS
BECAUSE THE WAY THEY RAN
THEIR BUSINESS.
THEIR BUSINESS. I HATE TO SAY THAT BUT
THAT’S THE TRUTH AND
OTHERS IN TROUBLE
BECAUSE OF WHAT SAUDI
ARABIA DID.
ARABIA DID. I DO THINK IT’S ON THE
TABLE RIGHT NOW.
MARIA: WHAT DO YOU THINK
THE CUTOFF POINT IS,
CRUDE OIL AT 34 AND
CHANGE EVEN WITH THE
RALLY NOT AT THE LEVEL
THAT THE SHELL PRODUCERS
NEED.
NEED. SIXTY-FIVE-DOLLAR A
SIXTY-FIVE-DOLLAR A BARREL THAT THEY ARE
BASING THEIR BUSINESS ON
THAT THEY HAVE
EXPECTATIONS IN PLACE
AND WHAT DOES IT GOING
TO MEAN IN TERMS OF RIGS
THAT THEY CANCEL?
>> RIGHT, RIGHT.
IF I GAVE YOU AN AVERAGE
PRICE, IT’S $40, EVERY
SHELL BASE IS DIFFERENT.
SOME NEED $60 TO MAKE
MONEY.
MONEY. OTHERS BECAUSE OF DEBT
LOAD NEED HIGHER.
WE ARE HEARING FROM
PRODUCERS TODAY THAT
THEY ARE CUTTING CAPITAL
SPENDING, THEY’RE
SPENDING, THEY’RE STOPPING PROJECTS RIGHT
NOW.
NOW. NOW ULTIMATELY THAT’S
BAD IN SHORT RUN BUT IN
THE LONG RUN IT’LL
PROBABLY, YOU KNOW,
SQUEEZE SUPPLIES.
SQUEEZE SUPPLIES. ONCE WE GET PAST
CORONAVIRUS AND ECONOMIC
STIMULUS THEY’LL BUT
DEMAND SURGE AT SOME
POINT AND WHEN THAT
HAPPENS WE WANT TO MAKE
SURE THE U.S. ENERGY
PRODUCER TAKES ADVANTAGE
OF IT AND NOT SAUDI
ARABIA, RUSSIA AND OPEC
WHICH REALLY CAUSED A
BIG HICCUP IN MARKETS
YESTERDAY.
YESTERDAY. MARIA: WHO IS GOING TO
BLINK FIRST, SAUDIS OR
RUSSIANS IN YOUR VIEW?
>> RIGHT NOW I THINK
IT’S GOT TO BE SAUDI
ARABIA.
ARABIA. LISTEN, YOU KNOW, PRINCE
BIN SALMAN ACTING TOTAL
IRRATIONAL RIGHT NOW AND
PUTTING FAMILY IN JAIL
AND LETTING THEM OUT.
HE’S UNDER A LOT OF
PRESSURE AT HOME BUT
THIS WAS, YOU KNOW, A
VERY UNPROFESSIONAL,
VERY UNPROFESSIONAL, IMMATURE ACT AND EVEN
THOUGH I THINK RUSSIA --
I THINK EVEN RUSSIA IS
GOING TO TRY TO COME
BACK TO THE TABLE, BUT,
YOU KNOW, UNLESS THEY
CAN GET BIN SALMAN UNDER
CONTROL, YOU KNOW,
ANYTHING IS POSSIBLE AT
THIS POINT.
THIS POINT. MARIA: WE WILL LEAVE IT