Citigroup analysts Francesco Martoccia and Ed Morse discussed their opinions on the changes in oil demand in a study released earlier in July. According to the researchers, the price of crude oil might fall to $65 per barrel by the end of 2022 and then much lower to $45 per barrel by 2023. In July and August, OPEC and its partners plan to raise crude oil production. Production has climbed by 400,000 barrels per day over the past two months, reaching 432,000 bpd monthly. On August 3, the cartel will get together once more to decide how to proceed. Many nations that produce oil rely on the revenue from crude oil to support their economies. The ideal scenario for falling oil prices would involve an excess supply and a reduction in demand. The Citigroup research has taken into account a number of oil market crises that date back to the 1970s.
Insider Monkey picked some oil stocks to sell before the recession begins. In terms of size, TotalEnergies SE is the sixth-largest oil and gas company worldwide. The corporation must offer a 0.12 euro per liter discount from July 1 to August 31 due to pressure from the French government. 17 million individuals are expected to benefit from this discount, but it will have a negative financial impact. Oil and gas firm Shell Plc is headquartered in London. The US shale boom did not work in the European supermajor’s favor. Due to Shell plc’s cheap CAPEX and investment in exploration, this is anticipated to continue. Oilfield services provider Schlumberger Limited is headquartered in Houston. The corporation was compelled to leave Iraq’s Kurdistan region. Lower E&P activity would result from a drop in oil investment, which would not be advantageous for Schlumberger. The crisis between Russia and Ukraine has had a significant impact on BP Plc . It was compelled to sell off its 19.75 percent stake in Rosneft. A financial hit of up to $25 billion might result from this. Incorporated in Midland, Texas, Diamondback Energy, Inc. is a producer and producer of natural gas and crude oil. Long-term debt for the business as of the end of Q1 2022 was $5.80 billion. A 45.89 percent total debt to equity ratio results from this. For more details, click 10 Oil Stocks To Sell Before The Recession Begins.
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