Dear Reader,
Oil prices, both West Texas Intermediate and Brent Crude Oil, keep rising.
I prognosticate oil prices could get near 50 USD in the next 2-3 months.
The economy is recovering and oil supply has been cut by OPEC countries and Russia. What is more, natural cutting of oil supply is happening all the time as hydraulic fracturing companies in the US are either going out of business or reducing drilling for oil drastically, since even at the current oil prices of around 34 USD they keep making losses when they drill for oil and gas.
Large oil majors like Exxon Mobil, Chevron, Royal Dutch Shell, BP, Total, Gazprom and Lukoil will undoubtedly benefit from the ongoing increase of oil prices. Mid-size oil producers like Marathon Oil Corporation and Hess Energy will also most likely see their market capitalizations rise.
I do not think the pending oil price increase is sustainable, though. Not at 50 USD, but at 40 USD oil prices can find a temporary equilibrium.
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Posledovich's.Petar Posledovich does not
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Petar Vladimirov
Posledovich is not liable for any investment losses incurred by reading and
interpreting blogposts on this blog and posts on social networks.
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Respectfully yours,
Petar Posledovich
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