• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 1 hour Would bashing China solve all the problems of the United States
  • 4 hours Let’s Try This....
  • 3 hours COVID 19 May Be Less Deadly Than Flu Study Finds
  • 4 hours Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 2 hours 60 mph electric mopeds
  • 2 hours Pompeo's Hong Kong
  • 3 hours New Aussie "big batteries"
  • 7 hours China to Impose Dictatorship on Hong Kong
  • 21 hours The CDC confirms remarkably low coronavirus death rate. Where is the media?
  • 4 hours Monetary and Fiscal Policies in Times of Large Debt:
  • 3 hours Oil Markets Could Soon Face A Devastating Supply Crunch
  • 17 hours Backlash Against Chinese
  • 2 days Iran's first oil tanker has arrived near Venezuela
Dan Dicker

Dan Dicker

Dan Dicker is a 25 year veteran of the New York Mercantile Exchange where he traded crude oil, natural gas, unleaded gasoline and heating oil…

More Info

Desperate Times Yield Fantastic Opportunities

Thursday’s ECB announcement from Mario Draghi gave everyone in the stock market continued hope – with 60b Euros of bond buying power, the stock markets both across the pond and here reacted positively. We’ll see even lower rates than already exist in Europe (even if German Bonds already have negative yields).

For the oil complex, the move had a predictable negative impact – a bigger than expected QE program from Europe sent the dollar again soaring, driving oil prices lower and with them, shares in oil companies.

We see another expected reaction to another of the 5 inputs to oil price that I isolated, four of which have no reason to turn around anytime soon. Oil prices will continue to lag under $60 a barrel, and most likely hover near $50 for the next 4-6 months.

So what the heck are we supposed to do? We know, as well as the CEOs in Davos, that oil prices under $60 are totally unsustainable and ridiculous – ridiculous in that 6-8 million barrels a day of oil production is unprofitable at that price. Given enough time, those barrels will come out of the supply chain, although the irony is of course that no company wants to be on the list of those that stop producing. Every single one of them is eyeing someone else while watching their cash flow disintegrate. Can I last longer than XYZ resources? They all ask.

And here’s where the first big opportunity must be for investors – in finding those who will sell assets,…




Oilprice - The No. 1 Source for Oil & Energy News