WTI futures back below $20 at $19.52/barrel. Get ready for $16 or lower. Face it, this coronavirus sheet will be with us for a while. Maybe a solid vaccine next year. The whole situation stinks.
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Bet the farm on cheap oil and we gotz plenty of cheap oil now boyz. We should be raking in cash.
Oh wait.
@vtk anyone with at least half a brain and had also lived outside a 100 mile radius of Midland / Odessa knew shale oil was all BS. All those companies that were there early made great investor presentations based on EUR curves that depended on the all time best wells.
Don't hate the skeptics for being right just because you and your executive team drank the CoolAid.
Watson / Wirth bet the farm on cheap oil and now they got caught ... no major projects in the investment cycle that have solid DPI. TCO will have to be the savior in all this. Wirths' days are numbered ... Chevron cant make any money at $20/bbl. Someone has to take the blame. I never understood why we went to gas in Appalachian Mountains ... I told my management then and I am now vindicated. Dumb, dumb move Chevron Exec's.
@evo+14uc6T93, dang, girl, everyone should have just asked you way back in 2106 when you began having all these brilliant predictions about the future that you didn't tell anyone about!
Too much oil being produced. Too many small players. Consolidation is the path toward better market control. The world is swimming in oil, oversupplied even if the global economy gets back to booming (good luck). $45/bbl oil won't be seen in 2020. Maybe not even in 2021. Get used to it, lower for longer.
WTI $40 by end of this year
I mean, while the coronavirus is clearly depressing the demand, the supply-demand curves have been diverging well before this onset. I've been expecting a downturn around this time since late 2016 based on the size and scale of the projects that did remain funded through the last downturn coming online through 2019 and early 2020. The coronavirus is just an added factor. Rig counts have been going down steadily since the start of 2019 while US production as a whole was still growing and had gone up by more than 1MM bbl/day (at the peak) since then. This was coming either way. The Chinese and Indian economy growth has slowed faster than predicted, that was another factor at play. I laughed out loud when people said we would see $100/bbl oil again...$50-55 really is fair market price, imho.