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Mascoutah, Illinois | The Saudi's are sitting on almost 700 billion in cash at the end of June. You can call it a blunder, I believe it ends up being the reason we eventually see hyperinflation in the oil market and the Saudi's will look like geniuses. The Saudi's can bleed cash for probably the better part of six more quarters before they may have to cut the spigots back. Many frail companies in the United States with highly leveraged balance sheets playing in the fracking and renewable space. Some banks and some hedge funds holding some paper which will be worth pennies on the dollars when these highly levered companies go belly up and they will. I would never underestimate what the Saudi's are doing. The cartel survived eight to nine dollar oil in the late 90's and will continue to prosper. This was no blunder in my opinion. In the end, they will emerge with a few scars but will have eliminated quite a bit of competition on our soils and they will reign supreme as they have for decades. After they have taken out enough players, they can cut the spigots back and take crude north of $100-$125 in the blink of an eye with the U.S. having fewer players than we do today. | |
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OPEC's 900 billion dollar blunder..??
