Goldman Sachs report: Oil headed to $20 a barrel

[Nadiru]

You guys need to check what's happened to Venezuela and Russia lately.

Canada is also in recession now.

And yes, whether shale production from the US is economic or not is at the core of the issue, especially when you consider the high yield debt held by US shale companies.

It is, though E&Ps are due for a house-clearing.

[Deleted]

It is, though E&Ps are due for a house-clearing.

The thing is, healthy house-clearing gets more difficult when there's leverage involved.

It starts hurting other institutions out there, and starts derailing credit markets.

[Rollo]

Gas prices are going down relatively fast as well. US Average is currently at $2.34 a gallon and that's because California is bringing the average up so much

Still paying $2.99 at my local Chevron station in California.

[I Push Buttons]

My father's drilling company recently fired 1/3 of their employees.

Even though my parents are well off compared to many, like everyone else in this country they live on the edge financially speaking. Multiple cars, two houses, an RV, a boat, etc., all of it bought with loans.

Here's to hoping my family still has a place to live in one year

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Also lol at people saying Saudi Arabia is trying to destroy the US economy... That makes sense... They want to destroy the one nation that more than any other facilitates their oligarchy/oppression, props up their economy, and defends them... All while paying them for the privilege of doing so...

SA increases production because quite literally their entire economy is oil. They do nothing else. Oil. So the deteriorating price literally sinks their economy... They can't just ride out the storm like the US, where oil is one small part of a massive economy... They have one single way to keep their economy going as oil gets cheaper... Make more.

[Reeve]

And why was there a price drop?

Because supply increased faster than demand.

[Afrospinach]

Also lol at people saying Saudi Arabia is trying to destroy the US economy... That makes sense...

If you are going to talk like that I would say it looks like the US is punishing Russia, the US is the one who has ramped up production AFAIK and has a much more diversified economy so is not really kind of susceptible to this type of "attack".