He points out that the double - digit growth much of the emerging market experienced in 2010 is over, so it's unlikely we'll
see oil prices rise, at least in the short term.
Against this backdrop of delayed rebalancing, we now
see oil prices fluctuating around current levels, in a lower range than we had expected earlier this year.
Sure, many analysts
see oil prices staying depressed through this year, and the most pessimistic
see oil prices staying low for several years.
HERERA: So, if you «re a longer term investor and we do see some sort of military action and we do
see oil prices move, from what I «m hearing from you is you should n`t change your overall game plan.
The EIA, for example,
saw oil prices averaging just $ 49 per barrel next year.
Last Thursday
saw oil prices soaring once again a day ahead of the OPEC meeting in Jeddah, Saudi Arabia.
«We have
seen oil price drops before.
The difference now is that I do not believe we will
see oil prices at 100 dollars again.
What top hedge funds have been buying [Hedge Fund Wisdom] Free e-book on Texas HoldEm Investing [Texas Hold Em Investing] Latest letter from Greenstone Value Opportunity Fund [Distressed Debt Investing] Citigroup (C) offers attractive risk - reward [Greg Speicher] Video: How Berkowitz got comfortable with Citi [Morningstar] Summary of a recent talk with SAC Capital's Steven Cohen [Dealbook] How Stevie Cohen changed my life [James Altucher] Hedge funds buying more municipal bonds [CNBC] Sum of the parts valuation of Yahoo (YHOO)[Minyanville] Buffett says pricing power more important than good management [Bloomberg] Passport Capital
sees oil prices holding up [WSJ] Bank loan funds drawing interest [InvestmentNews] For more great links, scroll through this linkfest [AbnormalReturns]
But Anadarko
sees oil prices remaining low.
If we want to
see oil prices significantly lower then let's, as consumers, support the alternative energy movement.
You don't
see oil prices go up like this or gold.
Increased production and reduced demand due to slowing global growth led to the decline which
saw oil prices fall from $ 110 per barrel to a 13 - year low $ 27 per barrel in early 2016, with recovery to just $ 43 / bbl in July.
Not exact matches
When the carrier's 2015 volumes fell because of external forces, such as collapsing
oil prices, Reckmeyer
saw an opportunity.
Costs back then were still low by today's standards, but the integrated mining operations were
seeing operating costs of $ 12 - 18 / bbl and new projects needed $ U.S.
oil prices of $ 20 - $ 30 to generate reasonable rates of return.
The financial crisis slammed
oil prices, but you can
see from the graph that there was also a major break in the
pricing relationships which had held so tightly up to then.
But if it's longer than that — which does look possible — we're going to
see a significant rise in the
price of crude
oil, and in the
price of refined products, especially in Western Canada.»
Phil Davidson
sees the company's prospects rising with those
prices, so much so that if
oil has a very long rally, «we will probably be out of the stock,» selling to take profits.
Sure, Bank of Canada Governor Stephen Poloz
saw the plummet in
oil prices hurting Canada.
The region in recent years has
seen investor sentiment rattled by developments such as the drop in
oil prices, the war in Syria and a sudden corruption purge from Riyadh.
«No one could have
seen, say the meltdown that happened in the
oil prices.
The next few weeks will be crucial for
oil prices as investors
see how the OPEC deal will be implemented, according to a new report by the IEA.
We have a different view on inflation, which we
see below 2 percent even in 2018,» analysts at Bank of America Merrill Lynch said in a note on Wednesday, explaining that
oil prices will keep headline inflation low.
The recent hot run for airline stocks has coincided with another period of low
oil prices (
see chart below) and steady economic growth, leaving some to wonder whether aviation's sad history will repeat itself.
In theory, the move could also drive down
oil prices, so businesses that rely on fossil fuels may
see savings.
The hard fact for North American producers is only now are we
seeing a true market
price for crude
oil.
Depressed
oil prices should be spurring some takeovers for the energy space, but if the sector's big dogs no longer believe
oil could stay above $ 40 a barrel or if they know about pitfalls the market is not
seeing, that could threaten the M&A prospects, Cramer said.
Industrial goods manufactuer Precision Castparts
saw its stock tank this year because of low
oil prices, Fortune's Geoff Colvin reported.
With nearly half of all American families
seeing one fifth of their spending go to
oil, gas, and gasoline, a sustained drop in
prices means an immediate and significant stimulus.
With the recent drop in commodity
prices, especially for West Texas Intermediate crude
oil, consumers are poised to win big - time while many in the financial markets are
seeing a stream of losses.
I
see the
price of
oil going to $ 60.»
Oil dipped on Monday as soaring North American production was
seen undermining efforts led by OPEC and Russia to tighten supplies, but
prices were still on track for their strongest start to the year in five years.
The Comey broadside came during a busy morning for Trump on Twitter, which also
saw him take shots at OPEC for causing «artificially» high
oil prices and House Democratic Leader Nancy Pelosi over taxes.
«What we're
seeing is a textbook implosion with regard to exploration and production capital spending domestically because the industry was leveraged to very high
oil prices,» says Bill Herbert, a senior researcher at Houston
oil and gas investment bank Simmons & Co..
The gold and copper miner, which also drills for
oil and gas, has
seen its bottom line dry up as the
price of each of those natural resources has fallen sharply recently.
«I can
see a scenario where
oil prices get super-bullish again if companies overcut,» he says on a recent morning, sitting in his conference room on the 38th floor of an office tower at the bottom tip of Manhattan.
Citi's comments come as
oil prices have recovered from a plunge in 2014 with the bank
seeing the first stop for the rally at about US$ 65 a barrel, around 25 % more than current
price levels.
If you're talking about a new project with no significant investment already deployed, building a new mine if you expect today's
prices to hold in the long term is a tough call — a 50 - year
oil sands project is a lot of risk for less than a 10 % rate of return — but even there, you can
see the impact of the lower Canadian dollar and the hedge provided by a royalty regime which lowers rates when
prices are low.
«Undoubtedly, whatever the strategy is of Donald Trump and his finance ministry, they managed to support
oil prices in the last week by talking the dollar down, so if we
see a big (upward) correction in the dollar then we'll probably
see a (downward) correction in
oil.»
Oil prices are at multiyear lows but some analysts
see a buying opportunity.
Without a quick risek in
oil prices, we will
see more major defaults.
«We still
see a lot of downside, including
oil prices falling and a lot of political risks.»
They
saw the damage that would come from the collapse of
oil prices long before Bay Street did.
«It's very difficult to
see, based on the current fundamentals,
oil prices rising significantly in the next few months,» he noted.
Speaking of the
oil industry, we have
seen a nearly 25 % drop in
oil prices (US Dollar, West Texas Intermediate) since June, according to the U.S. Energy Information Administration
Foreign exchange has been an area of some concern for Saudi in recent months as the crash in the
price of
oil forced the country to expend its FX reserves to levels not
seen in over three years, and draining the country's economy.
«If the geopolitical tension subsides or results in a smaller supply disruption than currently
priced in, we are likely to
see a sharp pull - back in investor positioning and an even sharper correction in
oil prices than the $ 5 or so that might be warranted even as macro uncertainties persist,» U.S. bank Citi said in a note to investors.
«I believe we are in for much greater volatility in
oil prices for the foreseeable future and that's why you've
seen Cenovus preserve cash by moderating our growth and reducing our workforce,» CEO Brian Ferguson said in announcing the job cuts.
SCM Direct CIO, Alan Miller says he believes the market has probably
seen the sharp falls and sharp recovery in the
oil price recently, while commenting on commodities overall.
The rollercoaster ride in
oil prices over the past three years may be old hat to investors familiar with the commodity's historical sensitivity to macro events (
see chart below), but
oil price volatility is by no means endemic and several factors are now lining up to suggest a calmer period for crude may lie ahead.