Shale punishment14 Mar 2020 00:47
Forgive me for being a new investor in oil and ENQ specifically, but I have a question to you seasoned investors. Since the US shale market has taken a very intrusive cut of the market (not saying right or wrong), but when MSB and Russia saw this opportunity to actually use the Corvid-19 excuse to hammer the market and destroy the shale industry for good. I see no reason why not. The American public hates it since the fracking is destroying their drinking water and polluting their land. By flooding the market with cheap oil, they will disrupt the shale market by at least 50% within the next 6 months.
But then we have the other side of the coin.
What if the market doesn't want to buy the cheap oil from the Saudis/Russia?
The market decides, and if you don't want to buy a Toyota, Skoda etc you can always buy another brand. If the global market decides to buy more from UK, Norway etc and minimize their procurement from Saudi/Russia their price war will be their loss. I know they are the main producers, but with a smaller market during the corona outbreak, the market has the power to decide and they can really punish the dictators trying to rule the world. Tell me if I'm wrong, but we live in very uncertain times.