Russia will not cut production and will make effort to hurt US shale oil producers. Get ready for WTI below $40. You know what that means. Yes you do.
12 replies (most recent on top)
This is not a temporary dip, it will be low for long time, the virus is not yet impacting US in the same scale as China or Italy, but wait for it, mid April will be a different situation, you heard me ,get ready and stack up foods before it is too late.
As I recall Chevron laid off a whopping 300 staff in 1998. Texaco 1,000 employees. True armageddon.
The last time crude oil closed below $11 a barrel was on July 25, 1986 when it hit $10.90. The all-time intraday low for crude-oil futures in New York was $9.75 a barrel set on April 1, 1986. The previous comment is a complete lie. I worked in the oil industry in 1986. It was completely devastated and over 500k people lost their jobs. Again, on November 30, 1998, OPEC ministers at a meeting in Vienna last week failed to extend existing output cuts and instead postponed any decision on production policy until next March. The news sent oil prices tumbling to their lowest level in more than 12 years Monday with the January light sweet crude oil futures contract sliding to $11.15 Monday afternoon, down 71 cents. Earlier, the crude-oil contract fell to $10.82 a barrel, marking the lowest intraday trade since July 27, 1986 when it fell to $10.65 a barrel. In 1998, there were significant layoffs, similar to what recently happened in 2015-2016.
Oil at $30. BCG will need to update their lay-off spreadsheet equations....
Oh sure, Chevron will lay everyone off on a temporary dip. What nonsense. I have seen oil as low as $11 during my career with limited impact on staff. Ignore the troll folks. Probably the same loser who took the annuity and perennially trolls this page and many others out of anger and spite.
WTI will be under 35$ by Friday for sure, both because of Corona virus spread as well as recent Saudi decision to hike production and give deep discounts to buyers to keep market share, this is a storm not many can survive, sad times.
Many of you will be gone out the door, never to return. You better start networking now, and I mean with other companies, not other BU's or departments within Chevron. This Saudi oil production increase is not a joke. Many of you are in denial about how serious this is to your employment. You will be surprised at how quickly your friends will back-stab you to keep their jobs and have you lose your job. Keep your eyes and ears open and your mouth shut.
This is most definitely not Fake News; just go to Oilprice.com, Bloomberg, CNBC or numerous other industry related and financial websites and see for yourself. I don't want this to happen, it is going to make a bad situation even worse. But we can't hide our head in the sand. Seriously everyone several things are lining up that will result in a major drop in oil prices over the next few weeks. No one is crying wolf, the wolf is at the door.
Fake News to the max. LMAO! keep it coming! love it!
Just read the two articles on the OPEC meeting about Russia's strategic decision and the Saudi response, both are more than a little concerning. I agree with both of you, this will get very nasty, very quick. Add in reduced demand from the Corona virus slump and its a perfect storm for the oil industry. Russia's timing is impeccable if their aim is to inflict maximum pain. Aramco's strategy to make Russia pay for opting out of the proposed cuts will plunge the global markets even further into the red. American shale producers will be put to a serious test. Its likely that several will fold unless they can get access to capital. That is another death star alignment seeing how Wall St. has so publicly soured on the energy sector of late. This will not be pretty. My bet is that if this lasts 6 months notable consolidation / significant deals will result. Oxy is one organization that will be in a big time bind by Q4 2020. Wow, the fertilizer is about to hit the ventilator for real. Holy hell.
Putin is p-ss-d at US sanctions on Nord Stream 2 pipeline to Germany.
Saudi are going on a price war to try to outlast the Russians by selling Arab light at $8 discount to Brent and will increase production to 10mmbd. Won't be surprised if oil falls to upper 20s. Chevron's shale-first strategy will be tested.
https://www.bloomberg.com/news/articles/2020-03-07/saudis-plan-big-oil-output-hike-beginning-all-out-price-war.