$32 Billion Loss Forces Pemex To Downgrade Offshore Ambitions i Mexico ! Oil production will go down all over the world .
Today, I’m going to try and tackle the reasoning for my ‘wild’ predictions for oil reaching triple digits by the end of 2017. While I am nearly alone in these forecasts, they are not just pulled out of space, but with deep regard for the fundamental supply/demand picture that everyone mostly agrees upon, combined with what I think is a deeper insight into the likely trajectory of oil company leverage, financing and the role of financial oil derivatives.
Despite the technical nature of this discussion, I think I can make a strong case for $120 oil in 2018 using only two charts of my own making – one charting global demand, which is more universally agreed upon, and then an overlay of global production, which is more open to prediction.
First, demand: Almost all analysts including the EIA and IEA agree that demand continues to grow at a steady pace throughout the rest of the decade, and even a minor economic downturn will only slow the pace of growth (green line), but not upend the upward trend line of demand. Sorry to those environmentalists who pray for an end to carbon use growth in the next decade – virtually no one currently believes it will happen.
Due to slack demand ??? Ford Motor Co., which posted record quarterly earnings today, said it’s shutting down its F-150 pickup factory near Kansas City for a week next month due to slowing demand for its most profitable product. One trick pony ? lol
Schlumberger Ltd. will reduce activity in Venezuela after the world’s largest oil services provider failed to collect enough payments from the national oil company.! ........... production cut will follow .
Ford had built up an inventory of 288,000 F-Series trucks as of April 1, according to Automotive News Data Center. That represents a 105-day supply in an industry where a 60-day supply is considered ideal. ???????????
AAPL annual revenue (last year) $231.3B Annual profit (last year) $53.4BNet profit margin 23.09% , plus the 250 Billions in the bank ! Stop panicking ,lol
they accumulate the oil cheap while they can , knowing it can be sold for higher price in the future !!!