Rigzone recently introduced a new fixture in its editorial content offering – a review of “hits and misses” in the oil market from the past week in which informed observers share their market expectations and whether they actually occurred.
Switching the emphases from the past to the future, Rigzone has also asked these market-watchers what developments they will pay particularly close attention to this week.
Soaking up capacity
Tom McNulty, Houston-based managing director with B. Riley Financial’s Great American Group, said that he will be monitoring the actions of energy firms with excessive debt loads.
“Energy companies with too much debt, holding on one day at a time, need to find a way to liquidate assets,” McNulty explained. “We have way too much spare capacity and it’s time for it to be soaked up by players who have managed their balance sheets properly.”
An attempted defense
Meanwhile, Barani Krishnan – senior commodities analyst at Investing.com – told Rigzone that he anticipates a valiant effort of sorts to play out this week in the oil market.
“I’m expecting oil bulls to try and defend the market from further collapse until OPEC concludes its meeting,” Krishnan commented, referencing this week’s OPEC and OPEC+ gatherings in Vienna. “As of now, there is no certainty that even a 600,000-barrel-per-day cut will do much to save the market. Those reductions will kick in over time, while the demand loss is in real-time.”
To contact the author, email mveazey@rigzone.com.
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