Today, however, a little bit of good news.

We'll see here.

Oil prices bouncing back a bit.

W t I crude right now at 33.

65.

That's up a bad 8% Jonas right now for a look at the impact this price war will have on the energy sector.

Gary Ross, CEO of Black Gold Investors.

Good morning to you.

Good morning.

There's a little bit about nice.

I don't want to call it a rally.

A little, a little bit of anything is better than where we were before, But the question is whether you think this is a bottom, whether you think it's where this is headed next, I don't think it's a bottom because we haven't really seen the supply.

I mean sort of Rabies increasing supply to 12 million barrels.

They plus in April. 00:00:59.180 --> 00:01:3.080 So that's April loaders that won't arrive in the United States until June. 00:01:3.540 --> 00:01:6.600 So basically, we haven't seen the huge surge in supply. 00:01:6.950 --> 00:01:12.350 There's been stocked building, of course, in Asia because of this very shop demand drop from the virus.

But we're going to see this supply coming in the next few months, So I don't think we've seen the lows yet.

Okay, so we haven't seen the lowest talk about the fallout in terms of what you think the economic impact is where you think the fallout will be.

Well, I think it's gonna have a dramatic effect, mostly on us.

Shell produced.

We're going to see production in the United States Plateau and then begin to decline.

And that's of course, assuming that this continues, which I think will.

That's a question of what could be done if you were in charge here.

Is there anything that could be done to end this and this stalemate?

Don't call it a nice way to put it.

It's the right thing for them to do from an economic point of using the right thing for Saudi Arabia to do for Monica. 00:01:57.780 --> 00:02:1.750 They cannot manage the market by themselves if you think about it. 00:02:1.760 --> 00:02:5.170 There was a 1.7 million barrels a day official cut. 00:02:5.520 --> 00:02:10.750 The Saudis went from 10 6 to 97 They count the for over 50% of the cup.

Who can cut an OPEC?

It's sort of Rebic.

Wait, you a basic.

Maybe Iraq a little bit, but they can't do it alone.

They need.

That's 14 million barrels.

They have 102 million barrels.

A global production.

They need non OPEC.

They need Russia with the largest oil producers in the world's.

And Russia was really not doing anything.

They're a free rider in this hole.

Cut and sew.

The sword is just said enough is enough.

Do you think there's any pressure to be put on Russia?

Do you think there's any pressure to put on Saudi over the next couple of days here?

I think there's been some pressure put on them and I wouldn't be surprised.

The US administration has tried to put some pressure on, but the end of the day, If you're Saudi Arabia, you can't manage this alone and also step back.

You have Libya out a 1,000,000 barrels that you have Iran out of the market.

Two million barrels.

They have Venezuela out of the market. 00:02:59.630 --> 00:03:3.850 I mean, you're talking about a huge potential supply when you look out the next year. 00:03:4.240 --> 00:03:6.900 So how do you make room for all this potential supply? 00:03:7.440 --> 00:03:12.070 You have to get Shell to start slowing down and start declining.

And $35 W T.

I will lead to a 23 million barrel.

They drop in shell production next year.

And that's will make room for you know, if you're if you're a public event public public investor, out their retail investor.

Looking at this situation today, you would do what?

Given what you know.

Well, maybe only maybe on some of the some of some of the big public company.

Maybe on some M P s.

I don't know.

I don't know.

I don't really own anything.

Oh, no.

Cannabis.

No, I understand.

I'm saying you're looking at this.

And if you're out there watching us right now, you would tell our viewers what?

Well, I would say consumers are gonna benefit from lower prices.

I think there'll be a pretty time when Refiners will benefit from the fact that the feed stock will be relatively inexpensive. 00:03:57.770 --> 00:04:3.820 Inevitably, though, chief crude will become a cheap product and put some pressure on margins down the road. 00:04:4.220 --> 00:04:10.870 I think all industrial, all industrial complexes that use energy I'm gonna find that their costs have come down.

But look, you were just talking about the airlines.

It hasn't helped them all that much, given all the cancellations that they've seen.

So the journal said, Lead up.

Putin shows again that he's not trumps friend.

What about M.

B s President Trump may need to use the phone to remind the Crown prince which country has stuck by him during his war with Yemen.

His standoff with gutter in missile attacks from Iran.

Do you think President Trump calls M B essences help us out?

I bet you already called.

You think he's already called him and said W T F What did he say when he called?

I think it probably quality said, Look, this is creating it.

This equilibrium in the market.

It's causing stock market to go down, you know, we need you to stabilize the old price.

You say that it wasn't exactly what you heard this morning. 00:04:58.090 --> 00:05:3.020 What you heard this morning from the CEO of Aramco is we're going to 12.2, right? 00:05:3.160 --> 00:05:6.830 That's a tremendous increase in sales. 00:05:6.830 --> 00:05:7.290 Think about. 00:05:7.290 --> 00:05:9.610 They're really selling 400 a day to the U. 00:05:9.610 --> 00:05:9.770 S. 00:05:9.770 --> 00:05:10.230 Market.

The way they've lowered prices.

They went from $3 overpriced tau $4 underpriced in the U.

S.

Market.

Their cells in the US are going to go from 400 a day to a 1,000,000 1/2 2 million barrels a day.

Come April, April Lotus.

So we're gonna see a huge increase in the US Where does the president come down just in terms of?

We want lower gas prices for Americans, But all of a sudden it's so low that it's it's threatening.

Jobs in the industry would.

Hey, wants it both ways, right?

It wants Texas, Louisiana, the Mexico, North Dakota.

Exactly.

So you can't have it both ways.

They ended today.

It's all comes down to fundamentals, supply and demand thing.

American president saying Hey way, want you to stabilize and not let prices fall lower. 00:05:58.620 --> 00:06:4.010 It's just it's the weird twist tells you where we've come because we're doing so much oil production ourselves.