RE:RE:Early oil trading confirms my thoughts Why not not fear the common flu in the same way you ask. Because the common flu mortality rate is typically around 0.05-0.2%. Coronavirus’ mortality rate is over 2% and possibly much higher than 2%.
Coronavirus is much different than SARS and MERS. SARS and MERS were not highly contagious. Coronavirus is as contagious as the common cold.
Of course coronavrus will pass. But it likely will take much longer and be more destructive than the vast majority think. From a global economy standpoint it is going to be highly deflationary with oil prices being hit hard. The global markets are just waking up to this reality. JMHO. GLTA.
oilisswell wrote:
"Oil is down big in early trading from coronavirus fears." Fear it is. Why not fear the flu which has killed many more? Because it hasn't affected the economy? No, it is because it is not new(s)!
Like SARS, this will pass and/or become old news. Jawboning won't change a thing. Oil consumption continues to rise. We are now over 100 million barrels a day! That is +1 million barrels/day per year and rising.
(https://www.statista.com/statistics/271823/daily-global-crude-oil-demand-since-2006/)
Now unerstand that we cannot continue to supply such quantities without exploration, production, and ultimately profit. So as the price languishes, capex gets reduced, oil finds diminish, and the price of oil will have to reflect reduced supplies coming, or we'll start to walk.
Now as far as VET is concerend, it is similar to IPL, in that they report dividend as a percentage of FFO, not FCF. You might have to look that up LOL That is the reason the CEO has stated the dividend is safe and was when oiul was much lower. You are obviously not a shareholder, just an antagonist. Are you short?