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Today’s Oil Market: America, We’ve Lost Texas

20.04.20 23:10 ET

Pardon my oldness, but the Bloodhound Gang said it best:

Yeah, this isn’t and did not end well. The United States of America lost the states of Ohio, Pennsylvania, Texas, Oklahoma, North Dakota and South Dakota.

But most idiots will not notice this nuclear event until they realize that not only are we no longer energy independent, but that our economy looks like that of Argentina or worse, Venezuela. Which by the way, Caracas is well on its way to becoming the biggest third world toilet in history but they don’t know it yet.

So how bad was the close of the May 2020 WTI crude oil contract today?

ONLY down 305% roughly, and that was after a bounce of a – $43.70 per bbl reading.

Goodbye Texas.

Goodbye Ohio.

Goodbye South Dakota.

It was nice knowing you.

Seriously though 20% of the American economy just went 100% into the shitter. Businesses will fail. Mortgages will go unpaid. Rents will be abandoned. And that’s on top of the Chinese Virus garbage which has killed restaurants and retail. If anyone has visited Central and West Texas one would understand just how integrated oil is into the Texas economy.

Now multiply that time every state in the region. Oklahoma will have no reason to keep fracking. Louisiana’s offshore rigs are now totally unprofitable. Arkansas, Pennsylvania, Ohio, the Dakotas and every other state which experienced budget surpluses are about to become as vulnerable as Illinois, New York, or New Jersey as revenues evaporate.

And that doesn’t even start to address the problem.

For once, as much as this hurts me to say it, think about the bankers. The banking industry on a regional basis is probably going to experience a 30-40% failure rate barring a massive Federal bail out.

So enjoy today and tomorrow.

These are, were, the good old days.

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