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An issue that's widely overlooked is that an oil well being economic versus uneconomic is more of a financial phenomenon than a geological one.

The Fed can't physically flood the market with oil but they could certainly prop up others to do so and we're living in an era when the seemingly impossible does indeed happen and usually with little if any warning.

Just 5 months ago to this day, the big concern in Australia was about the Sydney fireworks going ahead. Consider all that has happened since then, in a mere 5 months, and I don't think the idea that we see oil companies drilling and producing with no intent of making a profit is out of the question at all if there's some broader political or economic reasoning behind it.

In other words, I'm wary that central banks get involved and there's a complete disconnect between oil price versus any sort of fundamentals. I'm not convinced that will happen, but it seems that other markets have completely lost track of real world reality so why would oil keep following fundamentals?

<blockquote data-quote="Smurf1976" data-source="post: 1075001" data-attributes="member: 676">An issue that&#039;s widely overlooked is that an oil well being economic versus uneconomic is more of a financial phenomenon than a geological one.The Fed can&#039;t physically flood the market with oil but they could certainly prop up others to do so and we&#039;re living in an era when the seemingly impossible does indeed happen and usually with little if any warning.Just 5 months ago to this day, the big concern in Australia was about the Sydney fireworks going ahead. Consider all that has happened since then, in a mere 5 months, and I don&#039;t think the idea that we see oil companies drilling and producing with no intent of making a profit is out of the question at all if there&#039;s some broader political or economic reasoning behind it.In other words, I&#039;m wary that central banks get involved and there&#039;s a complete disconnect between oil price versus any sort of fundamentals. I&#039;m not convinced that will happen, but it seems that other markets have completely lost track of real world reality so why would oil keep following fundamentals? <img src="https://www.aussiestockforums.com/styles/default/xenforo/smilies/twocents.gif"&nbsp; class="smilie" loading="lazy" alt=":2twocents" title="Two Cents&nbsp; &nbsp; :2twocents" data-shortname=":2twocents" /></blockquote>

[QUOTE="Smurf1976, post: 1075001, member: 676"] An issue that's widely overlooked is that an oil well being economic versus uneconomic is more of a financial phenomenon than a geological one. The Fed can't physically flood the market with oil but they could certainly prop up others to do so and we're living in an era when the seemingly impossible does indeed happen and usually with little if any warning. Just 5 months ago to this day, the big concern in Australia was about the Sydney fireworks going ahead. Consider all that has happened since then, in a mere 5 months, and I don't think the idea that we see oil companies drilling and producing with no intent of making a profit is out of the question at all if there's some broader political or economic reasoning behind it. In other words, I'm wary that central banks get involved and there's a complete disconnect between oil price versus any sort of fundamentals. I'm not convinced that will happen, but it seems that other markets have completely lost track of real world reality so why would oil keep following fundamentals? :2twocents [/QUOTE]

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