Posted on 01/26/2016 3:50:48 PM PST by bananaman22
Inventories will continue to rise, but the momentum is slowing.
The following are some observations as to how we got here and how we’re gonna get out.
9 reasons why oil has taken so long to bottom:
1. OPEC increased production in 2015 to multiyear highs, principally in Saudi Arabia and Iraq where production between the two added 1.5 million barrels per day (mb/d) to inventories after the no cut stance was adopted.
2. Russian production increased in 2015 to post Soviet highs.
3. Long planned Gulf of Mexico production began coming on in late 2015.
4. An overhang of 3,000 or 4,000 shale wells that were drilled but uncompleted (“ducksâ€) entered a completion cycle in 2015.
5. Service companies and suppliers went to zero margin survival pricing (not to be confused with efficiency). The result has been an artificial boost to completions that cannot be sustained.
(Excerpt) Read more at oilprice.com ...
No one knows that oil is cyclical? It’s supposed to be high forever now?
Did you see this? ping
Thank you. I don’t have time right now to read and digest. Will be on late morning.
Buy low, sell high especially when coughing up 7% dividends
Buy low - Sell high. If it’s at bottom, should’nt this be the time to buy into energy funds/stocks?
Rats... I posted right before reading through to yours.
Are harvesters the same as investors?
Regardless, harvesters- hang in, hang on and keep goin’.
The islamics are close to their end.
You’re welcome.
1. 80- 9- % gets wrote off the first year. That's a bonus
2. One must look at the investment over 20 to 30 years
The money has been in the wet gasses. Propane, Butane, ethylene etc. It will all settle down sometime.
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