At the extension of the OPEC agreement we again calling for its irrelevance, just as we did days after the first agreement. There are simply numerous structural headwinds working against fossil fuels. From now until the middle of the next decade, oil spikes are still possible, but these will be temporary, bar major disasters. Source: […]
Entries Tagged as 'Commodities'
June 4th, 2017 · Comments Off on Oil Is Dead
February 6th, 2017 · Comments Off on Could Investors Face A Death Spiral In Oil?
The oil industry is rejoicing the OPEC agreement and the upcoming Trump liberation of US fossil fuels. However, there are strong undercurrents which are not particularly favorable for the industry. Not everybody in the oil world seems to be prepared for some of these changes. Could Investors Face A Death Spiral In Oil?
February 4th, 2017 · Comments Off on Trump’s Energy Blitz
The incoming Trump government looks set on making considerable changes in US energy policy. The main planks look to be substantial deregulation and a shift in emphasis towards fossil fuels. We look at the likely effects of these policy changes on energy markets. We’ll also highlight some little reported downsides. Trump’s Energy Blitz
December 23rd, 2016 · Comments Off on OPEC Vs. Reality, Which Will Give First?
OPEC has shot itself dramatically in the foot with the market share based strategy two years ago, foregoing hundreds of billions in revenues. The about-face this month is more rational, but it’s very unlikely the old order is going to be restored. OPEC countries should take what they can get and use this to diversify […]
December 22nd, 2016 · Comments Off on Are The Steel Bulls Still In Charge?
Steel stocks had a terrific year. The rally has been boosted by rising prices and protectionist measures in the US and EU. A possible Trump infrasstructure bonanza could provide further impetus. But there are risks from China, where there is still massive overcapacity. Are The Steel Bulls Still In Charge? – ArcelorMittal (NYSE:MT)
October 24th, 2016 · Comments Off on Who Won The Oil War?
November 3rd, 2015 · Comments Off on Has OPEC Gone Mad?
OPEC’s strategy to force a dramatic retreat of American shale isn’t succeeding anywhere near the scale needed for the strategy to be called a success. The cost to OPEC itself is too big for this strategy to be continued. Steep revenue losses, severe budgetairy problems, foreign currency losses, political instability and rift within OPEC itself. […]
October 14th, 2015 · Comments Off on Goldman’s Oil At $50 By 2020? | Seeking Alpha
Goldman Sachs argues that oil will stay low for the rest of the decade but predictions are tough, few if any saw the oil crash coming. The main argument from Goldman is about the resilience of the US shale sector. This is indeed remarkable, the number of rigs has halved, but production has stayed up. […]
May 19th, 2015 · Comments Off on Goldman Sachs on Oil
Predicting problems until the end of the decade..
April 18th, 2015 · Comments Off on OPEC Can’t Kill American Shale
OPEC is supposedly out to beat, or at least curtail the growth of American shale oil production. For a host of reasons, especially the much shorter capex cycle for shale, they will not succeed unless they are willing to accept permanent low oil prices. But, permanent low oil prices will do too much damage to […]