What's The Deal With Oil?
Crude oil has dropped almost 70% since the beginning of the year to its lowest levels since the 90s. Gas prices have fallen below $2 per gallon on average and under $1 in some places. Gas is the cheapest I’ve seen in my lifetime, but no one has anywhere to go.
The pandemic has created a supply glut, with demand vanishing almost overnight. The price war that Saudi Arabia has waged is exacerbating the problem.
Will US shale survive this crisis as oil prices free fall with no bottom in sight?
There will undoubtedly be casualties among US oil firms, but the strong will survive. Consolidation among the US oil firms is likely, and the survivors could come out of this better than ever.
I would keep my eye on the big names like Chevron CVX, Exxon Mobil XOM, and Occidental OXY.
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Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Chevron Corporation (CVX) : Free Stock Analysis Report
Occidental Petroleum Corporation (OXY) : Free Stock Analysis Report
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