> As all the damage has been done , now they are only hurting themselves ......
Unless the way they intend to take a pound of flesh out of the banks isn't to build a very large futures position then just turn down the taps a bit. We tend to think that the oil market is so large that it can't be cornered, but if you are Russia or Saudi Arabia you can absolutely influence the market directly.
My strong belief is that we will see a ramp up to >$100 oil in the next couple of years as the Saudi's manage their output. Probably then they will crash it again should more high cost production turn on.
MRM provides a reasonably secure vehicle for exposure to this, with multi year contracts giving some stable cashflows yet sentiment locked to the oil price thanks to day rate/spot contracts. If the debt was a bit smaller is would be safer, but then would never have got down to the 20s.
It is very interesting to watch.
MRM Price at posting:
39.0¢ Sentiment: Buy Disclosure: Held
