Oil prices may be in for a bumpy ride…
Oil prices may be in for a bumpy ride:
- Saudi ARAMCO is to sell some shares to the public. While most of the discussion has been around the valuation – $1.7 Trillion (With a “T”) or $2 Trillion (they have settled on $1.7T). Can it sustain a dividend while acting as the “buffer” in the world markets? Today, when oil prices decline, ARAMCO pumps less to drive prices up. Can it still do this with public shareholders? My guess is that the Saudi government, which maintains control, will keep turning the spigot off and on as needed
- US “frackers” are fracking less – i.e., production will be flat to declining
Several people will ask what that means for the price at the pump…. I guess the direction will be up and probably more volatile.
On a happy note, a major client just recognized AutoO2 as their “Global best practice in Load Building.” They are saving a lot of money!