I don't think it's a short turn slump, it's been a one way train for the last six months and sometimes it feels like you can't give away the stuff. The world is massively oversupplied at the moment and that's with Iran under sanction, Libya crippled, and Iraq far from full production. Saudis aren't gonna cut and Russia can't afford to. The outlook for global growth and demand looks very weak for the next few years.
It's going to be interesting to see how producers handle it. I haven't really looked deeply into the production costs of various producers or how well hedged into the future they are but they've got to be feeling pain right now. We're not going to be seeing $100 oil again any time soon imo.
It's going to be interesting to see how producers handle it. I haven't really looked deeply into the production costs of various producers or how well hedged into the future they are but they've got to be feeling pain right now. We're not going to be seeing $100 oil again any time soon imo.
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