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Why Oil Bulls Aren't Backing Down

Why Oil Bulls Aren't Backing Down

While there is still plenty…

Big Oil Clashes Over Fossil Fuel Future

Big Oil Clashes Over Fossil Fuel Future

Executives from major oil companies…

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Editorial Dept

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What Will $15 Oil Mean For Producers?

1. Gasoline demand plunges to 26-year low

- Unsurprisingly, U.S. gasoline demand has fallen sharply.

- With the U.S. economy in a form of hibernation, the impact is finally showing up in the data. The weekly EIA release shows a 13.8-million-barrel increase in crude inventories, gasoline stocks rose by 7.5 million, and refinery rates fell by 1 mb/d.

- Gasoline demand is down to 6.5 mb/d, a figure not seen since 1994.

- “This underlines our hypothesis that the harm caused to the US oil industry will outweigh the benefits for consumers,” Commerzbank wrote in a note.

2. Shale cuts growing

- More spending cuts are coming from the U.S. shale sector. Roughly 22 U.S. independents have cut spending by around $20 billion so far, an average of between 35 and 50 percent or more, according to Wood Mackenzie.

- “[C]ompanies today are far leaner than back then; and what we’ve seen so far may just be a taste of what’s to come,” WoodMac said.

- For the majors, share buybacks “will stop…Shell (US$4 billion), Chevron (US$5 billion), Total (US$2 billion) and Equinor (US$0.7 billion) have already shelved planned buyback programmes for 2020,” the consultancy added. The big question is whether the dividend payouts are going to get trimmed as well.

- Whiting Petroleum (NYSE: WLL) became the first major victim of the latest collapse in oil prices. The Denver-based driller declared…





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