http://www.wsj.com/articles/oil-prices-slide-after-solid-february-1425292459
5 replies (most recent on top)
Agreed with 72180. Big companies like Baker, Slb and Hal do not lay off that many employees on a drop in oil prices that are expected to rebound in a month or two.
Downstream companies are playing this market really well. The cost of goods sold is droping but somehow (strike? Maintenance? Layoffs? Wage cuts?) to bring gas prics at the pump to allmost the same levels we had before the downturn. They are printing money now.
The unions strike at some of the biggest refinery in the country. Oil price won't go up until (1) demand picks up after the Chinese and European economies expand and (2) major unrest in the oil-producing middle east region.
Not really. Gas prices are going up but the price of oil is still slowly declining. Gas prices can go up based on numerous factors such the refinement process, holidays, rig count, foreign issues blah blah blah. Oilfield companies didn't lay off all these people just for 2 month dip in prices, they did because long term projections are grim. The oil surplus is at an 80 yr high and storage facilities are almost at full capacity and until those levels lower drastically the oilfield won't rebound. As for natural gas, it ideally needs to be around $4 for companies to increase production. It's a sad state of affairs for the entire oilfield and the unemployed.