TSX:HSE.PR.B - Post by User
Post by
onec007on Mar 13, 2020 7:14pm
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Post# 30806581
Please read....
Please read....I usually follow HFI Research on both Seeking Alpha and Twitter. Definitely provides logical explanations and given today's environment we need more of this research. I echo the same feeling because NO oil producers can maintain today's prices from pure losses (corporate) to huge revenue gaps in country's budget. Nigeria, Venezuela, Iraq, Iran and Mexico (although least impacted due to their conservative hedging strategies). Aside from UAE, Russia and Mexico most are HEAVILY dependent on oil prices for their economy and most do not have soverign wealth funds. I could be wrong (didn't think the coronavirus would be this uhm panic inducing), but I just don't feel that OPEC would drag this out for years. Thinking 6 months to possibly a year at the most. We are already hearing countries like Venezuela and Mexico looking to mitigate the discussion between the Saudis and Russia. I think they will eventually get back to the table, but many shale production will decline by then.
https://seekingalpha.com/article/4330764-oil-saudi-price-war-scenarios