Cash-Strapped Saudi Arabia Hopes To Continue War Against Shale With Fed's Blessing
Wednesday, August 5, 2015 at 11:23PM
Uranium Stocks

Two weeks ago, Morgan Stanley made a decisively bearish call on oil, noting that if the forward curve was any indication, the recovery in prices will be "far worse than 1986" meaning "there would be little in analysable history that could be a guide to [the] cycle."

As we said at the time, "those who contend that the downturn simply cannot last much longer are perhaps ignoring the underlying narrative that helps to explain why the situation looks like it does."

"At heart," we continued, "this is a struggle between the Fed’s ZIRP and the Saudis, who appear set to outlast the easy money that’s kept US producers alive." This is an allusion to the fact that the weakest players in the US shale industry - which the Saudis figure they can effectively wipe out - have been able to hold on thus far thanks largely to accommodative capital markets.

But persistently low crude prices - which, if you believe Morgan Stanley, are at this point driven pretty much entirely by OPEC supply - are taking their toll on producers the world over. That is, the damage isn’t confined to US producers.

In fact,

Read more....


Is the bottom really in? Could there be a final capitulation just ahead of us? Have you plenty of cash to take advantage of the coming bargain prices?

If you would like to know which stocks we are buying and selling please join us atStock Trader our premium investment service.

Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199

If you are new to investment in the precious metals sector then you can subscribe of our FREE newsletters regarding gold stockssilver stocks and uranium stocks, just click on the links and enter your email address and we will email you our articles along with other interesting posts.

Please remember to check your spam folder once you have subscribed to ensure that our verification email has not gone astray and you are getting our emails.






Winners of the GoldDrivers Stock Picking Competition 2007 




Article originally appeared on Uranium Stocks (
See website for complete article licensing information.