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!