Updated: February 19, 2016
Oil prices picked up this week on the promise that Saudi Arabia and Russia would coordinate a cut in production. But surprise, surprise – there’s already speculation that they’re both going to cheat.
That’s going to keep oil prices low – and it’s going to threaten the dividends of many producers, both here and abroad. For some reason, many energy management teams believe that this inventory glut and price devaluation cannot last. Apparently they forgot what prices looked like pre-2005:
As long as money managers are making bullish bets on oil, the price is going to stay low or head lower.…