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Do we have a Shale Slowdown? Speculators are running crazy

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Oil speculators are calling a bear market because of the lack of rig count? it looks like they forget that is was Wall-street that asked the oil industry to rain in spending get some positive cash flow on the books..

The largest oilfield service company in the world has seen its earnings hit as the shale industry goes through a soft patch. S&P cut Schlumberger’s debt rating to A+, down from AA-. Meanwhile, Halliburton saw its outlook downgraded from “stable” to “negative.” –oilrag

Yet they don’t count companies like Liberty Oilfield that have been taking market share from those big companies as one of the reasons,  also Oil companies have been more reserved in regards to CAPEX even as oil prices have been trending higher.

In the past, oil would go up and so would investments, creating a boom and bust cycle. not this time. Oil companies have been more calculated and restrained in spending to keep Wall Street happy.

From the looks of it , we have A return to strong cash flow mentality in the oil patch.

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Commodities

Crude Oil slipping half a percent to the weakest closing price since Feb

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U.S. West Texas Intermediate crude futures settled 25 cents lower at $53.25 per barrel, slipping half a percent to the weakest closing price since Feb. 12. Earlier in the session, WTI hit a session high of $54.63 per barrel.

Concerns that a U.S.-China trade war, and threats of tariffs on Mexico from the United States, would diminish global crude demand, however, weighed on oil prices.

“Focus has shifted from the supply to the demand side as a U.S.-China trade agreement has proven elusive and as worries over the debilitating effects of tariffs on global economic growth have now shifted to Mexico,” Jim Ritterbusch of Ritterbusch and Associates said in a note. – read more

Most of the movement for oil has been based on “economic concerns of weakened growth because of the potential impact of [the] trade situation,” said James Williams, energy economist at WTRG Economics. U.S. tariffs on Mexican goods have added to the concerns about China, he said. – marketwatch.com

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Commodities

Crude prices slumped to a three-month low on concerns with Trump’s trade policy

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Oil Opens a New Window. prices slumped to a three-month low Friday as concerns about President Trump’s trade policy Opens a New Window. and the slowdown in the Chinese economy Opens a New Window. cast doubt on the outlook for global demand.

Front-month Brent crude futures, the international benchmark, traded down 2.6% at $63.60, having earlier dipped to their lowest level since mid-February. U.S. benchmark WTI dropped 2.4% to $55.25, its cheapest price since early March. read more @ FoxBiz

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