OIL, BONOAPOCALYPSE AND PRICE WAR
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Black gold is in the doldrums. Many seek his disappearance, bury him and give life to cleaner energies. The dirty legacy of dinosaurs is losing ground, but continues to have a place in the world.
The last decade has been a fast one for oil: in 2010, everyone thought that it was going to end, and the price of a barrel would climb to hundreds of dollars. Renewables, alternative sources of energy, were growing, beginning to challenge - albeit very little - the hegemony of oil.
Later, between discovery and discoveries, discoveries and discoveries of deposits, the supply of oil increased theirs, turning off the alarms of the foremen and lowering the price of a barrel.
And so we are today.
Crude oil prices have dropped below $ 20, price levels of more than 20 years ago. The lawsuit is strangled, in the middle of a detained planet fighting a dangerous virus.
There are those who even speak of negative prices!
How did we come to this? Pride and power struggles. Before the outbreak of the pandemic, Russia and Arabia did not agree to make cuts, leading to a price war.
Everyone to produce the maximum! Let's sink the barrel price to wear down the rival!
Pumping was steady, and the big loser, the American shale industry. The US had conquered the role of producer nation, weakening OPEC and moving closer to its long-awaited dream of energy self-sufficiency.
Dream of which it is necessary to wake up, because the price war threatens the entire industry.
50% of the US light oil industry could go bankrupt: shale oil is not profitable to extract with a barrel below $ 50. The bono apocalypse has already started, with the companies' debt downgraded to junk.
Many will close.
In this context, Russia and Arabia will be the great beneficiaries of the lowest supply of crude oil on the world scene. When the time comes, prices will rise like foam, as many producers will have given up and demand will recover.
Then the oil will rise suddenly!
The ground is close: we do not know if it will reach negative prices, but there is not much left for a minimum. Those who decide to bet on the purchase, will be able to reap immense benefits in the future.