Many have speculated that oil supply would have a great impact on oil demand and oil prices. I have heard this time and time again. However, I recently came across the opposite point of view, which got me excited! According to Bruno Navarro, Dan Dicker believes that oil supply will not become an issue.
Dicker said the pullback indicates a couple of things:
One, the state-owned Saudi Arabian oil producer thinks Europe is “probably on the verge of a recession.”
Two, “nonconventional oil sources have really been paying off over the course of the past year and a half” in the United States through a combination of shale and oil drilling.
“We are actually putting more supply on for the first time in 30 years,” he said.
Dicker said he was bullish on Transocean[RIG 42.02 -3.92 (-8.53%) ], despite poor fourth-quarter results related to one-time charges associated with retrofitting aging equipment.
“You’ve got to remember Transocean owns practically all of the rigs that can get at stuff over 10,000 feet, and there’s nobody else in the world that can get there,” he said. “These guys control the industry there.”
As an avid oil investor, it is good news to hear this. However, due to the fact many have said the opposite it is probably worth exploring further. Either way this gives hope to us hopeless oil lovers out there.
Quotes taken from report by Bruno Navarro, Read the entire article here.
This is not an offer to buy or sell securities. Oil investment carries with it very high risks. The information contained within this site has not been nor will it be verified by Turn Key Oil and is subject to change at any time. We are not a United States Securities Dealer or Broker or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions. Please read our full disclaimer before making any decisions.