Oil
Oil prices continued to stabilize after US crude oil inventories delivered a smaller than expected build. The weekly inventory increase in stockpiles was only 452,000, much less than the 1.8 million build that was eyed. Oil companies remain in the danger zone as long as WTI crude is trading in the low-$50s. Explorers and producers have over $85 billion in debt maturing between now and 2024 and they won’t be able to be profitable if oil does not stabilize soon.
This is a make-or-break moment for the oil industry and in order for higher oil prices to occur, central banks need to deliver a wrath of stimulus, OPEC + must deliver deeper production cuts next week, the global spread of the virus needs to ease.
Oil prices continued to stabilize after US crude oil inventories delivered a smaller than expected build. The weekly inventory increase in stockpiles was only 452,000, much less than the 1.8 million build that was eyed. Oil companies remain in the danger zone as long as WTI crude is trading in the low-$50s. Explorers and producers have over $85 billion in debt maturing between now and 2024 and they won’t be able to be profitable if oil does not stabilize soon.
This is a make-or-break moment for the oil industry and in order for higher oil prices to occur, central banks need to deliver a wrath of stimulus, OPEC + must deliver deeper production cuts next week, the global spread of the virus needs to ease.
No comments:
Post a Comment