Doesn't sound dramatic at all on Bloomberg, Epiphany. “On the advice of his doctor, the prime minister has tonight been admitted to hospital for tests,” a spokesperson for Johnson’s office said Sunday. “This is a precautionary step, as the prime minister continues to have persistent symptoms of coronavirus.” Johnson is likely to stay in hospital overnight, but remains in charge of the government, and is in contact with senior colleagues an official said.
Nearly every company in the energy/oil field seems to be in a death spiral then. Share price action is not always true reflection of value. Some of the better Canadian E&P's that can outlast more than a year of very low oil prices have fallen 80% since January. I prefer to see that as an opportunity rather than a selling signal. I would have appreciated your tip to sell at an all time high, not at this stage of the cycle.
Cutting the dividend was the most sensible and normal thing to do under these circumstances. Engie in France have done the same. Long term holders are in a world of pain, but selling at these prices is not a clever thing to do....Engie and EDF in France are also trading at all time lows by the way.
It's amazing watching the psychology in the oil market. Crude declines the most in a day since 1991, it hits the lowest level in 18 years, and investors become MORE pessimistic about the oil industry. But, in a sense, that's backwards.
Investors should think about the future - not the present - and so now that we know we're at the cheapest prices in two decades, isn't it then more likely that the future will bring higher prices? Simple math and logic tells us that eventually if we run out of room to decline further, the surprises will be on the upside, not downside. Further, commodity prices are reflexive, as econ 101 teaches us. Oil jumping to $150 creates behavior that sows the seeds for a price decline; conversely, prices collapsing to $20 creates behavior that sows the seeds for a price increase. The cheaper oil gets, the less likely it stays cheap (in months/years, not days). Amazing how many miss this.
The expectations for the oil industry are so low that almost all surprises moving forward will be on the upside. Eventually oil won't have any room to decline further. And then what? Then we enter a world with a) ramping demand as the world economy starts turning back on, b) decreased supply as it's taken offline due to the low prices and c) the ever-present possibility that SA/Russia will come to an output reduction agreement.