A few items via Reuters over the weekend ahead of Ceraweek, where energy industry leaders meet in Houston.

Josh Young, chief investment officer at Bison Interests.:

  • "The costs are way higher and that affects the profitability,
  • "You're starting to see producers hold back their capital. It's the opposite of what the president wants."

Dan Pickering, chief investment officer at Pickering Energy Partners.

  • "Shareholders are saying capital discipline, return cash to shareholders and then you have the most powerful man in the world, saying, drill, baby, drill - I think you pay lip service to the president, and you follow the wishes of the shareholder"
oil ceraweek 10 March 2025 2

What is it they say? The best cure for low oil prices is low oil prices.

  • ie - when the cycle sees job cuts, capex pulled back etc then that'll lead to tighter supply and higher prices. The key idea to keep in mind is 'eventually', K?

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CERAWeek is an annual energy conference organized by S&P Global

  • brings together global leaders, policymakers, executives, and experts from the energy, technology, and financial sectors
  • CERAWeek 2025 is scheduled for March 10-14
Source: Forex Live