Oil is turning bearish, despite all the speculative excitement of taking more Iranian crude off the market. The end of Iran sanctions waivers was officially on Thursday, but while oil importers were scrambling to find alternative supplies at comparable prices, oil prices crashed on record US production and a Russian pipeline coming back online to balance out the market.
And while the mid-week mass uprising called by the opposition leader in Venezuela temporarily boosted oil prices, the failure of Guaido to secure full military allegiance and oust Maduro immediately led to a shortened attention span among speculators. The other oil flow under threat is Libya, but the more likely short-term scenario is that General Haftar will start importing unilaterally. It’s not about upsetting the flow; it’s about controlling it, and the revenues.
Oil Story of The Week: What Exactly Is Buffett Betting On?
Buffett is throwing his weight behind Occidental in its unusual bidding war with Chevron for Anadarko’s prized Permian Basin assets. He’s offered Occidental $10 billion as it tries to derail Chevron’s $33-billion bid that everyone thought was a done deal until Occidental rocked the boat and came in with a $38-billion offer.
While analysts have crawled out of the woodwork to criticize Occidental and opine that Chevron will do more with these assets, Buffett’s $10 billion clearly disagrees. And Buffett may well be right on this one.…