Neville Prior

Oil.........

Neville Prior  15 January 2015 12:05:51 PM
Image:Oil.........
BP has said it sees oil at around $50 per barrel for the next 3 years, and is making cost cuts in response. Interesting to think about the knock-on effects..........
  1. The Saudis, Kuwaitis, UAE are not looking to reduce production any time soon, because they want to get their power base back, i.e. hurt the fracking industry in the US. I guess BP reckons 3 years will see a few of the frackers go "bust" and a number of the investors get a bloody nose.
  2. The Saudis cannot be that disappointed that the Iranians are really suffering from these low prices right now, and I guess are happy that the supposed Syrian supporting Russians are taking a "bloody nose" into the bargain.
  3. I would also think the Chinese are sighing with relief at a time that their manufacturing industry is "struggling", and Europe too will get some relief in a time of trouble.
The power of oil lives on...............
Comments
No Comments Found
Cornelius Group plc logo

Archives

© Copyright 2009 Cornelius Group plc
Contact us via email: sales@cornelius.co.uk : Tel: +44 (0) 1279 714300 : Fax: +44 (0) 1279 714320 :
For directions and our address information

Registered office : Cornelius House, Woodside, Dunmow Road, Bishop's Stortford, Herts. CM235RG. Number 1936460.
Our VAT Number : GB 700439765