RE:RE:Too Much Oil....?raven16 wrote: 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.
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.
If I'm "soft bashing" then there's a number of posters in here who are "hard pumping".
Are you suggesting Citi's analysts are lying re. the statements they made about the oil market...?
The USA is by far the largest oil producing nation in the world (21% of all oil). Saudis are second at 13%. Russia third at 10%. Canada fourth at 6%. Neither Canada nor the USA are part of OPEC+. Russia is, but oil and gas are the only exports that bring in big money to the country that is currently trying to fund an ongiong war with sactions placed on other exports they typically sell. You really think Russia is not going to sell as much oil as it wants regardless of what it says it's going to do....? Saudi is on an island by themselves as they can control their own cuts but not the "voluntary" cuts of other OPEC+ members.,and unlike the 1970s, the USA has far more influence on global supply and can take care of the demand in their own country all by itself.