http://www.albertaoilmagazine.com/2014/11/carnage/
November 04, 2014

Once again, Canadian oil and gas names are getting blown out the door at fire sale prices, and once again we appear to have the Kingdom of Saud to blame for it. The Saudis, who adjust the price at which they sell their oil to their various customers on a monthly basis, reduced the sticker price to U.S. buyers by $0.45 per barrel for December deliveries. The market, in turn, appears to be panicking, perhaps moved by the belief that the discount represents a desire to start – or deepen – a price war with U.S. producers.

What the market is ignoring, of course, is the fact that they increased prices to Asian markets by $0.95, and to European ones by $0.60. And, of course, that’s where the bulk of Saudi oil goes – not to the United States but to Asian and European destinations. But, in a market that appears to be looking for any available reason to hit the sell button, the bearish sentiment is carrying the day.
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Well, there’s always the OPEC meeting later this month. Of course, at this pace, oil will be selling for under $60 a barrel by then.