oil supply

Credit to Author: Gerard Reid| Date: Mon, 07 Oct 2019 21:00:28 +0000

There is a pretty simple truth about oil, and that is that there is lots out there, a fact that is not going to change going forward. In fact, quite the opposite. There is probably more upside to production, as well as downside on the demand side, meaning we will likely see low oil prices for the foreseeable future. The likelihood is that we will also see a race to the bottom in terms of the oil price as producers try to pump oil out of the ground and bring it to market as fast as possible. This in turn will lead to stranded assets as oil companies write down high-cost resources which have become too expensive to take out of the ground