Quote:
Originally Posted by Realtor 1
After gathering dozens of opinions from friends and clientele I have come to one conclusion -
Those in the O&G industry are not overly concerned, have received a bid of confidence from their employer and see this as a small bump in the road.
Those who are not in the industry are the ones predicting oil drops another $15 and housing prices drop 10-20%
A friend who's CEO has been through the last 3-4 oil recessions was telling their office that this is the least concerning one to date.
Time will tell!
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The O&G industry has to be positive and project an image of calm, otherwise they can add downward pressure from speculators and cause more damage. I have heard the exact opposite from friends and family in the O&G industry, it's all anecdotal evidence.
Nothing you said in this post has any credibility because if you look at the numbers they tell a different story then what you are being told. If they were not worried they would not be slashing capex spending.
Will the price fall $15 dollars? Anyones guess, if anything I would look at what the bankers are doing (not saying but doing) to see when supply may fall. If they start divesting / writing off loans to specific oil companies we may be on the verge of Shale collapsing in the US.
Banks are currently testing where their investment in the O&G industry against low oil prices going out to 2016, that plus supply & demand estimations show continued downward pressure at this time. Unless something gives I think we will break through $40 in by Feb. even all the celebrating on the spike today oil has lost all those gains and back hovering around $46.