I had an interesting day. My computer crashed repeatedly Accountants were in all day. We are late on financials.
Prices are up today based on news of a new agreement between Saudi Arabia and Russia to extend their production cut another six months. It is Saudi Arabia confirming cuts, not OPEC, because the rest of their crooked members could not agree on anything, They pump all the can every month and always have.
I am amazed by traders optimism that this will work. Good luck with that. U.S. shale crude producers have borrowed $84 Billion, not million, dollars to expand their drilling and take up whatever market share that Saudi Arabia and Russia give up. Now the flow of wealth will be reversed. The oil and natural gas go out on ships and wealth come back to the U.S. Now the price of world crude is set by U.S. shale crude oil producers. We, the people, get gasoline at ½ the price from before the shale boom. Hopkins Oil is a delivery company. Cutting our annual fuel expense by half is a very big deal.
The price will drop back down in a week.
Gasoline is up by 4.76 cents/gallon. Diesel fuel is up by 2.88 cents/gallon. Crude is up by $1.30/barrel to $47.47.