Oil is interesting because it's not typical market, it's more like betting on 3d geopolitical chess. Basically what happened was Russia walked away from an OPEC+ deal to cut production in respond to coronavirus causing a demand hit. 1/3
Russia knew, or had pre-arranged, that Saudi's would respond to this by flooding the market with oil (that's one of their favorite things to do). A drastic supply increase during record low demand is the perfect storm for a complete market crash. But, why? 2/3
Both RU and SA can can afford to sell oil at a loss for significantly longer than producers with high break-even and low cash reserve, especially US shale. They can flood the market until other producers go bankrupt, capture their market share, then make back the losses. 3/3
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