RE:Too Much Oil....?AlwaysLong683 wrote: Article courtesy Yahoo Finance:
Energy Stocks Biggest Challenge in 2024: Too Much Oil
Excerpt: Since 2000, in nine out of the 10 years in which global spare capacity has been above 3 million barrels per day, oil equities have underperformed the broader market, according to a note published by Citi. The analysts forecast 4 million barrels per day in 2024, with oil prices falling into the low $70s by the end of next year.
"ome have argued that the oil industry is underinvesting, but this view is simply not backed up by the data. Since the formation of the expanded OPEC+ in 2016, global spare capacity has built by 1.5 mbpd [million barrels per day], 80% of which has come from the US," reads the Citi note. The analysts went on to say "building spare capacity breeds both commodity and asset price-deflation."...
...Analysts expect demand next year to be met by increased supply from producers outside OPEC+, like the US and Guyana. “OPEC+ will likely continue to act to limit the extent of price-deflation but finds itself in a vicious circle of sacrificing market share to defend a price that, evidenced by growing supply, is still above marginal costs,” said the Citi note....
AlwaysLong683 , Way Funny As Citi Has Been Short Oil For The Last Year,Buddy I Just Love Your Soft Bashing On Baytex, Your The Only One That's Got A Hard On For Bashing Baytex And Yes Your Shorting The Stock.No Need To Respond.