Is the alleged oil deal to cut 750,000 barrels going to change the market?
Chris Temple joins us again today for our market wrap to discuss the details around the alleged agreement between OPEC and Iran to cut production. This is sending oil higher but will it actually make a long term difference in the market? We need to consider that just because these countries are cutting does not mean the supply/demand equation is back in balance.
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The Saudis have been cutting their own legs to maintain market share and now they will have to cut production like they should have done in the beginning and they would have saved 100 billion+ selling less oil but at $80 to $100. This would be like Apple selling iphones at $200 to maintain market share and bankrupting the company.
I loaded back up the last few days with USO at an average 10.22 and this time it looks like I can hold for a while as oil should head to $50+ and $60 (USO near 15) by year end.
I got back into GDX at 26.06 as a rally was due but sold out on the bounce.
The religious conflict between Sunni and Shia will always be a problem in the Middle East.
Saudi tried to defeat Iran (or at least inflict pain on Iran) by lowering the oil price.
Unfortunately for Saudi, the plan backfired because the US lifted sanctions and released a large amount of Iranian funds. This has destabilized the Middle East, and hurt Saudi significantly.
I don’t particularly like either country. As far as I am concerned the religion, whether the Sunni faction or the Shia, is an abomination, which should have been reformed centuries ago.
Nevertheless, as intolerant and degrading to women as Saudi Arabia might have been, at least it was an ally of the US. I fear the supposed Treaty between The U.S. and Iran is not worth the paper it is not written on. As far as I can ascertain the treaty is a figment of Obama’s imagination. Nowhere is it published. But then it would not be the first time a president would have lied to the American public.
CFS:
What good are Allies when they are complicit in financing attacks against you and the death of over 3,000 people?
This was same old hustle that the Arabs have been playing us forever.
The big news today was the first Congressional override of President Obama’s veto of the JASTA Bill.
Even though this bill was far from it’s original draft,it’s a start.
From this day forward, informed U.S Citizens will never look at the Saudi’s the same way.
Let the chips fall where they may.
http://www.politico.com/story/2016/09/senate-jasta-228841
Unfortunately any lawsuits brought against Saudi Arabia will probably only enrich attorneys.
I have never seen any information indicating the 911 attack was sponsored by Saudi Arabia, neither the Government, nor any of its princes individually. So how likely is it that the country or its rulers be found culpable?
It is possible that Osama bin Laden be found liable, but what then? He is dead.
He had relatives, but will they be found guilty by association?
The original bill and the veto are a boondoggle, in my opinion; a sop to the public, giving the appearance of a politician “doing something”, but in practice doing nothing.
There are many more important things this incompetent, corrupt government should be spending it’s time doing. 1.5 cents.
CFS:
This is where you are way off base.
You have not seen any information indicating the 911 attacks were sponsored by Saudi Arabia because you have not been looking or listening to the likes of Retired Senator Bob Graham.
Regardless of what you think of this bill,it is a start.
Tell us what would you consider more important than bringing closure to the families of the victims of 9/11?
Also this bill opens the door for “ALL” those who participate in State sponsored terrorism to be held liable.
Saudia Arabia to Sell All US Assets as Congress Overrides Obama Veto
I have a bit of a different perspective on 911.
First, the official story is a pack of lies. In order for that pack of lies to have been foisted on the public, very highly placed people had to be involved. The neocons are the obvious suspects.
Closure for the families, yes, a very worthy goal. But even more important is that 911 marked a great acceleration in the destruction of the US, justifying all of the ill-conceived and criminal wars and unconstitutional measures that have been taken over the last 15 years.
I doubt Bin Laden was a key player. His family were the only ones allowed to fly after 911, when the Bush (Bushes are great allies of Bin Ladens) administration allowed them to leave the US to return home. So clearly they won’t be prosecuted by the powers currently running the US. The whole story of OBL’s killing a few years back stinks to high heaven. Looks like another pack of lies. Seal team 6 isn’t around to tell their version of the story anymore, though, are they.
Saudi in general, very well may have been involved, but as supporting actors. Hard for me to imagine anything will come of this angle of investigating them, but I hope I’m wrong.
GH,
Don’t be such a ” conspiracy realist “!
(A) kerosine does not melt steel!
( B) building 7 didn’t fall cause it was afraid!
(C) the Bush’s and Clinton’s had nothing to do with planning anything that they would ever admit to! Ever..!!! ( friggin conspiracy.. )
Still Report 1220 US military hassle with getting ballots on time.
CFS:
Those with the most education will always draw the most educated conclusions,that being said, degrees in common sense are not handed out at college universities.
Experience is a difficult teacher,because she gives the test first and the lesson afterward.
Fed challenged over governor’s Clinton ties.
Thank-you Mr. Trump.
https://www.ft.com/content/dccb1784-8599-11e6-a29c-6e7d9515ad15
Why this asset manager says this Uranium company could be a ‘huge winner’
MARK BUNTING – Special to The Globe and Mail – Wednesday, Sep. 28, 2016
Thanks, Ex. I missed that.
Nexgen – it’s a world class discovery and deserves the attention it gets. I’ve been over debating Uranium companies on ceo today, and the folks there are a bit obsessed with NXE, but it is the premier exploration play in the Athabasca, so rightly so.
Something is going on in silver. A party or parties pulled 1.6 million oz out of SLV today.
Interesting.
As I predicted yesterday, specifically to non-manipulation believing Cory, today was an up day for metals, as will be tomorrow.
Friday I can’t call because of LBMA expirations. I suspect down in the morning US, until London closes, but don’t know their physical inventory levels.
Then next week there is no reason for downward manipulations.
Momentum traders and hedge funds piled into Silver in the Summer because they completely blew it and missed the initial run in metals and miners at the beginning of the year. Now that metals are pulling back, they are simply pulling money out to jump on the next trend (oblivious to the fact that a larger bull market has started in the metals and mining sectors that will last years).
Don’t worry, when the next upleg begins, they’ll miss it again, and then be like Johnny come lately investors and pile back in when the next move is almost done.
Very comical really 🙂
This editorial from Fi Fighter does a great job of showing just how extreme that the Uranium bear market has been (FAR more extreme than what happened to Silver or Gold or Copper). This is why it has me so very interested as the ultimate contrarian play.
___________________________________________________________________________
Portfolio Update: Adding to My EFR Uranium Position (September 26, 2016)
by FI FIGHTER on SEPTEMBER 26, 2016
Thanks, Ex, but I’ll stick to my 3 or 4 uranium stock holdings base, until I see volume indicators of a turn.
Yep, everyone is hoping the bleeding is almost over and that the ship does turn.
Like you said, once we see a bottoming there is a bunch of money on the sidelines waiting for proof of concept. Once the marketplace sees that, then I think it will be very similar to what we saw earlier in the year with the PMs (many will be caught by surprise). For now, Uranium is just getting pounded into the ground though. No rush to get positioned at this point. (I’ve been throwing some trading profits at the weakness in the Uranium stocks lately, and probably have already got too much exposure too soon, but I’ll trade them and lower the cost basis now and have a seat at the table when things do turn.
I don’t disagree with you, except that there is no sign of turnaround yet in my numbers.
Can’t disagree there. I’m beginning to wonder if there will ever be any turnaround in sight with U3O8 prices….. and have been tempted to throw in the towel recently.
Whenever I feel like that, I hold my nose, and buy a little more 😉
The Energy Report Examines Energy Fuels’ Plans to Recover #U3O8 From Tailings Ponds
SAN FRANCISCO, CA–(Marketwired – September 27, 2016)
“Dundee Capital Markets increased its target price for Energy Fuels Inc. $EFR $UUUU after the company unveiled updated plans to position itself as the premier #Uranium producer in the U.S., including a scheme to recover U3O8 from tailings ponds at its White Mesa Mill facility.”
In addition to the White Mesa plans, analyst David Talbot noted that “savings, innovation, and efficiency improvements [that] may include lower reagent use and recycling, higher recoveries, ore sorting, potential copper recovery at Canyon, [and] improved practices such as mechanized or water jet mining,” also played a role in the Dundee’s new target.
Talbot also detailed developments at White Mesa, noting this “new source of uranium from tailings pond returns complements processing of stockpiled alternate feed materials. . .this water sitting in tailings ponds contains dissolved uranium that wasn’t recovered earlier in mill life. . .the tails water appears to be running at 0.2–0.3 g/l U, even exceeding many ISR well concentrations, and is simply there for the taking.”
Energy Fuels has “40 acres of tailings ponds each ~30 feet deep in solution,” the analyst added.
> The company’s goal is to “sustain production capability, ramp up potential and resources, ultimately becoming the largest US producer. It should achieve this in 2017 given Cameco (CCO-T, BUY, CA$17.50 target) closures,” Talbot wrote.
I’m showing 6 analysts following UUUU, with an industry rating for UUUU of 9th out of 26 comparable companies. On average the analyst ratings are closer to strong buy than buy.
For Nexgen, 7 analysts are following and it rates 11th out of 26 comps.
Thanks CFS. I like these analyst updates, although, I’m on different company conference calls and often times the “professional” analysts are clowns, and quite often have completely the wrong impression about a companies growth profile, capex required, roadblocks they see that the company has to correct them on, and they are often quite biased (overly bullish or bearish). As a result, I take their research and price targets with the same grain of salt I do any other pundit, newsletter writer, or well researched investor.
If Nexgen is 11th and UUU is 9th, who the heck is 1-8? Please tell me it is not Cameco and Areva….
Europe needs to Revise Nuclear Strategy, says Committee
26 September 2016
“A consultative body of the European Union has called for the European Commission to adopt a “more comprehensive” nuclear strategy. The European Economic and Social Committee (EESC) says the commission should highlight nuclear energy’s positive attributes.”
CCJ ranks 48 out of 66
Chris,
Great public service announcement! Funny how they create these hyper fear distractions.. That said, the dollar is gonna move next month. But trading dollars for SDR is hilarious. At least for the common folk.
I hoped that would get a few chuckles…and well-deserved derision toward Rickards and his ilk who spread these dopey stories.
So you discount this behavior?
Given that $7 billion is less significant than a pimple on a flea when compared to the overall total debt market, yes, I do discount it.
One day the world will be off the global dollar standard. IMO, that can’t happen soon enough for the benefit of the people of the world, including our own. I can only hope and pray that, in trying to protect the dollar hegemony that has existed since the end of WW2, those who control the U.S. don’t incinerate us all in their attempt to maintain power.
When the day comes that the dollar standard is gone, it won’t be because U.S.-controlled institutions like the IMF, World bank, etc. have accomplished this. It will be because other nations/blocs have grown independent of those.
All this hype and flat out BULLSHIT presently of this “new global currency” being spread is a disservice. Worse, at least some of the people making these predictions know they are misleading people in order to sell something. Time would be better spent on the many legitimate/truthful things that will bring about the well-deserved death of the present global order; not in spreading fairy tales for personal gain to gullible people.
Palisade radio:
Thanks CFS. I just watched this and wondered if anyone had posted Jordan’s analysis.
There were some interesting charts on there, but he’s a bit bearish in the mid-term.
In contrast the charts that Gary S. has been posting are more bullish.
October is a big question ? at this point, so I’m just hanging onto my core positions for exposure to upside, but prepared to pounce on some of the stocks on my watchlist or my core holdings if they drop down another 15-30%.
I did add a little to a few stocks this week and last week as they corrected, because I had trimmed them at higher levels and like the sale prices being offered up in many miners.
The debate discussed by a Canadian and an Englishman, plus black lives matter discussion.
https://m.youtube.com/watch?v=W08M50N_0Q8
A MUST https://m.youtube.com/watch?v=-xu5p_nDcrg
A call for action to protect the internet
Could the handing over to the UN of the Internet be a way to kill alternative, and digital
Currencies?
Just wondering!
Several sources are reporting Clinton received debate questions in advance.
http://mediamatters.org/video/2016/09/28/foxs-newt-gingrich-pushes-rumor-hillary-clinton-got-debate-questions-advance/213414
And that she was wired as well
I have many times claimed the candidates have been chosen by MSM.
SGTREPORT.COM also suggests that the way Clinton answered the questions with memorized numbers points to a possibility she was fed the questions in advance.
Also, when Trump and Hillary left their podiums and shook hands at the end, it has been pointed out that only Hillary’s podium was cleared of papers, not Trump’s.
Where’s my tin foil?
If the cut drives oil prices up, champagne bottle corks will pop and frackers will be back in the game. This was an easy thing to predict.
JohnK, guilt by association does not work in a court of law.
There is no doubt that most of the 911 scum killing innocent people were Saudi Nationals.
I have seen no proof, however, of Saudi government involvement suggested, and certainly not published. Yes many of the terrorists were financially supported for their “education” in the US by the Saudi Government, but that in no way suggests or proves the Saudi government was involved in the 911 terrorism.
Even if money from Saudi paid for flying lessons, that still would not prove Saudi intent on terrorism. I have seen no smoking gun, that would allow victims to win in a court of law under American jurisprudence rules.
CFS:
Here’s the repost from above,it works just as good here.
Those with the most education will always draw the most educated conclusions,that being said,degrees in common sense are not handed out at college universities.
Experience is a difficult teacher,because she gives the test first and the lesson afterward.
CFS and JohnK both have posted interesting comments on the ruling.
But, first off, where would these cases be heard and by whom?
Secondly, how would you ever prove or be capable of gathering enough evidence for these cases?
I am not sure where they are going with this and we as “common folk” are not going to have or see any information regarding these topics. Something doesn’t seem right here. Something we don’t know.
Richard :
Have you ever lived down in the ghetto?
Have you ever felt the cold wind blow?
If you don’t know what I mean,
Won’t you stand up and scream ?
‘Cause there’s things goin’ on that you don’t know.
-Lynyrd Skynyrd
John
Funny, you should say. One of my favorite bands!
Richard
Right back at ya!
911 scum….wonder who that might be…..
One must always be careful what they post on the interweb.
Law suit against the Saudi family,is imo, only to draw attention away from the real scum
Of course your right Jerry.
How about the Human Rights panel of the U.N run by Saudi Arabia and Qatar.
Explain that one to me.
Good one …
Good article yesterday,…saying America citizen will be paying at the pump for all legal action against Saudi,. Might be a replay of 70’s oil embargo.,with a different twist
Jerry:
I say bring it.
1.Canadian Tar Sands
2. Bristol Bay,Alaska
3.South Texas
4. North Dakota
5.Wyoming,Colorado,New Mexico
6. Canadian and U S jobs for Canadian and U S Workers!
Big banks are going to make money either way, and politicians with inside info
A good time to check that zipper on your survival suit.
Forecast is calling for STORM WARNINGS
Panic in the Kingdom: Saudi currency,bonds extend collapse ,despite OPEC deal. Zerohedge
Goldman..(insiders)says..OPEC Deal may add up to $10 to price of Oil, two days after cutting oil price target by $7
Wonder if Hilly and the foundation, picked up any oil rights in Saudi
Oil slick Willy never let’s a disaster go to waste
I’m thinking that coats and ties are required in the lobby…Hope Bill thinks that is not all you are suppose to wear.
Goldman Sach’s and the Cinton’s.
Let’s start with the real of Glass Stegall?
Let’s start with the repeal of Glass Stegal.
I took a typing class,still only can type with two fingers.
Typing class and iPhone auto correction class for fat finger Americans a must … 🙂
Glass “hole” -St illegall….rip off Act. All Americans should be proud.
Might be time to take a second look at the coal stocks?
Coal and equipment with …..extra scrubber machinery
Of course Donald could open up a new tech school for new coal miner’s daughters.
I think West Virginia would be a good location.
He could name it Hillary Clinton School for Coal Miners Daughters.
Plus it is close to Greenbriar and the old gov’t bomb shelter., he can do whatever he does in the bomb shelter.
I’m thinking with that many rooms at the Greenbrier,The Donald could host the First Annual Coal Miners Daughter Beauty Pageant
😉
President Obama publicly states that he is worried about unintended consequences with the veto override.
What something like this?
https://www.youtube.com/watch?v=omnskeu-puE
Three months remaining,and Dumbo can leave the circus
This is way off-topic but it is a concise busting of the Reagan myth:
Peter Schiff does a great job explaining why the widely believed significance of the Glass-Steagall Act is a myth:
Novo gets some assays back.
2016-09-28 09:31 ET – News Release
Dr. Quinton Hennigh reports
NOVO RECEIVES BULK SAMPLING ASSAYS FROM BEATONS CREEK
Novo Resources Corp. has released the LeachWell assay results from 33 bench samples collected while excavating its 30,000-tonne bulk sample at its 100-per-cent-controlled Beatons Creek gold project (please refer to Novo’s news release dated Sept. 6, 2016). Grades range from 0.62 to 11.54 grams per tonne gold and average 2.78 grams per tonne gold. Samples were taken according to Novo’s costean sampling protocol.