Whenever world leaders speak, who will not take heed? Yes, during the much- touted world energy Summit, the top six dealers in the industry spoke up. They assured us that by the turn of the year the overall cost of oil would stabilize and everyone would cheer up. Indeed, the leaders assured the world that the era of oil accidents and spillage is now truly over. Things would soon be great, the gurus authoritatively announced.
At the summit, some of the keynote speakers were brokers and leaders who are highly respected within and without the oil industry. These leaders did not mince words. They clearly indicated that the oil business and industry had gradually fallen back into a safe zone, which is marked by greater equalization. This news of stability in the oil sector was greeted with jubilation everywhere.
Further, the leaders indicated at the summit that higher interest rates were now less anticipated. They said that the world supply of oil would soon exceed the expectations in the following few months. Interestingly, most of the dealers who attended the summit seemed to agree with the overall position of the world business and industry leaders.
At the same time, experts in this matter noted that the only way for the oil business to stabilize well was to ensure the rebalancing of the essential elements of oil business was properly done. The world oil supply and demand levels would need to be properly equalized for everything to turn out well. Unless this was done, the leaders predicted that stakeholders should expect lots of instability going forward. They noted that the pattern of good tidings was, however, beginning to be clear.
The business participants, to illustrate their point, noted that the Brent raw petroleum, which is the benchmark universally, had already hit a high by producing oil worth $43.58 a barrel. It is interesting that the organizations that participated in this summit collectively exchange a daily supply of oil to care for the needs of approximately 1/5th of the world’s population. The gurus were confident that the two-year value breakdown was already well set on its way.
When contacted, some leading dealers expressed a guarded optimism about the evolving fate of the world oil industry. They said that unless something happened fast, the bad fortunes of the past years would soon be back. By the time the third quarter ended, they said, the world oil supply and demand would reach the much-sought-after intersection.
Who can blame these leaders for not being completely optimistic about the world’s economic fortunes and the oil economy in general? Notably, past optimism with regards to these matters were not vindicated in the final analysis. It would take quite a few days, months or years for the world fortunes to change drastically, against all expectations. Yes, the vagaries of the economic weather can never be overstated.
In this forum, the Mercuria CEO estimated that the average costs stood at under $30 per barrel as the year started. He said that this had boosted the world oil health, leading to greater venture reductions. The CEO explained that the fact that oil prices had already fallen to about $28 barrel was an indicator of better days ahead. He said that this was, indeed, a good sign for the fortunes of crude oil because the future costs typically fell faster than the present costs.
At the summit, the head of the Glencore Oil expressed a point of alert to all stakeholders. He said that the world supply and demand factors were expected to change in the next half of the trading calendar. Regardless, the refined stockpile of items were noted to have generously expanded ever since the costs started tumbling downwards, falling from the initial price $100 per barrel earlier in the year.
The CEO explained that it was necessary for things to improve within the industry. For this to happen, however, he reminded the stakeholders that an expansive stockpile of the commodity would have to be worked through but the signs did not seem to be good. A major battle lay ahead.
The world’s leading autonomous dealer told participants at the summit that the business sector was fast moving towards a superior level of parity. Further, he said, the world’s top makers of the product would probably discover the consent to halt the yield in the following few weeks of the summit.