Crude oil up more than 10% today
WTI crude oil broke yesterday's spike high and ran to the best levels of the day after Russia said it was ready for oil output cuts if the US and Saudi Arabia also join in.
WTI is up $2.62 to $27.98 after hitting $28.56 at the highs.
I'm starting to think we need to tag $30 before it all falls apart again.
The headline that didn't get enough attention yesterday was from Exxon who said they're not seeking state intervention in energy markets. They said the free market was the best way of resolving oil imbalances.
They have a meeting with Trump today and I expect them to tell him the same thing. Exxon alone producers 3.833 million barrels per day. They were downgraded from AAA to Aa1 by Moody's yesterday but they still have a great balance sheet.
It's in their best interests to kill small and medium US producers and pick up their assets for pennies on the dollar. That's brutal but it's capitalism.
I also love this line from the CEO of Impact Energy Partners:
"Americans have no sympathy for 'oil billionaires' and most of the country benefits from low energy prices," said Mickey Raney, chief executive officer of Impact Energy Partners LLC, a small oil and gas producer in Oklahoma. "Our industry chose to accept the influx of Wall Street money that funded incompetent teams to drill wells that would never pay out. The management teams made millions in high salaries, stock options and cash bonuses for leading their companies into bankruptcy."
"Properly managed companies must now find ways to survive in the mess created by ourselves, not by Saudi Arabia or Russia," Raney said.
