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OPEC+ Oil Price Challenge: Catching The Falling Knife
From:
Albert Goldson --  Indo-Brazilian Associates LLC Albert Goldson -- Indo-Brazilian Associates LLC
For Immediate Release:
Dateline: New York , NY
Friday, February 21, 2020

 

Indo-Brazilian Associates forecasts that although China’s economic engine has seized, world markets have not reacted in proportion to the high medium-to-long term post Covid-19 risks if their post-Lunar New Year economic recovery is far weaker than forecast. Additionally:

The Saudis have gained a pyrrhic victory over US shale with increasing bankruptcies and forecast lower 2020 production.

Oil prices are in contango and far below the Saudis $83/bbl requirement to balance their budget and supertanker rates for crude oil have plummeted 75% since 4Q2019.

Even limited new oil production can grease the skids on oil prices if the Covid-19 crisis becomes a prolonged problem.

Autumn is the high season for Chinese oil demand and represents the critical crossroad that will determine the direction of global oil prices.

These particulars and other important factors can be accessed in the following published article: OPEC+ Oil Price Challenge: Catching The Falling Knife.


 
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