RE: Oil in free fall!30 Nov 2021 13:10
Afternoon all. I have not been on this forum for a few days as I could foresee the hysteria and panic.
" Negative Oil " " Oil in free fall "
Take a deep breath and relax. All you are seeing is the market doing what the market does. There are shenanigans going on here that have nothing to do with the real world.
Oil is being sold down by traders to pressure Opec+ to not only pause but, most likely , cut production.
Opec really hold all the cards here.
This is not April 2020. Demand for oil is near pre-pandemic levels and this new mild variant will make no difference to this recovery. At the turn of a tap, Opec have the ability to reduce and control supply and, with demand where it is, return to $80, $90+ very easily.
Opec are united, especially the big two being the Russians and the Saudis, and will act. What a great opportunity and excuse to cut production in the face of Biden's pressure and SPR action and the market's suppression of the price of oil.
My prediction. Opec will respond. Poo will recover. Demand will then outstrip supply after a month or two, even with the SPR releases, and then with reduced supply and increased demand. Happy days ahead.
This is all a game and certainly nothing to worry about. As long as you do not intend, or need, to sell ( give away ) your shares then view this period as just that, a game.
Meanwhile, more buybacks for BP's buck, a great opportunity to buy BP at a great price, (with a 12-24 month view.)
Remember, BP's number one priority is the dividend. Which they intend on increasing by 4% per annum until 2025, They intend on buybacks of $1billion per quarter until 2025, they are investing in the transition and can pay down debt............all at $60pb
This period will pass, keep smiling, BP is a cash machine.
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