While investors are told day after day that low oil prices are “unequivocally” good for America’s economy (pick your number $20, $30, $40 billion tax cut for consumers), it appears they are not buying this big lie (that appears to forget the other side of the equation of capex, jobs, and spending from the Shale Oil miracle). As oil prices push to levels where the majority of US Shale plays become non-economic on a half-cycle basis, markets are voting withtheir money and shale-based stocks are pressing to new lows (down 50-70% in the last few months).
At $75, oil prices are crushing more and more economic scenarios for Tight-Oil…
and equity investors know it…
Charts: Barclays and Bloomberg
via Zero Hedge http://ift.tt/1EzfKLY Tyler Durden