REMAR PETROLEUM Discusses How Long Crude Oil Low Prices Will Go On For
Since the deep downfall of Crude oil prices of 58 percent since June, many global titans of the $ 1.6 trillion-a-year oil business turned their investments down and changed their strategies very conservatively, and the big question now is how long it will take until the price will rebound back to their correct market value. The long term predictions indicate a stiff contango in the next period, probably slow prices increase in the next 6 to 12 months, or to be more conservative from 12 to 18 months.
Q: The oil prices drop over the past months has generated numerous side effects, which are the main ones and what will this downfall bring?
A: First it created many side effects on the financial companies, secondly has created significant damage to the oil stock markets. Today as a first retaliation of what happened, we have a financial market on the paper concerning the brent that no longer has the correct market values. But after all, today we don’t have to speak only of negativity but also a bit of positivity as the European market has been able to extract huge benefits for the industrial users and traction consumers. It is important to point out that the logistics on the wheel has benefited greatly from this recent situation.
Q: As per the slight last week price rise, what are your predictions? You think it is possible to witness a pretty fast recover?
A: The crude oil follows an almost steady real consumption, which currently fell influenced by international economy and politics. The biggest loss at this time is due to the lack of the possibility of financial coverage related to the established price.
Q: Many investors have announced budget reductions for their planned investments in new exploration plants and infrastructures. You as an investor in this sector how do you plan to allocate your company budget in 2015?
A: For our investments, we will continue in a corporate policy based on the synergy between investment real development and financial recoating, as the forecast for investments on oil infrastructure have been influenced by these very strong oscillations in the price of crude oil and extraction costs, it is clear that we will slow down our investments in the European countries in order to increase those of emerging African and GCC countries.
Q: Did your company face difficulties or order drops since the price of crude oil went into free downfall?
A: Yes certainly, the orders have slightly lowered and the new forecasts lead us to think that we will find stability in orders for crude oil, which influence logistics activities only between June and July of 2015.
Q: Which are the goals of your group for this year?
A: 2015 is a year of market settlement that will indicate clearly what are the prospects for the international development. It implies that the economic relationship between America, Europe, Asia and Russia this year will finally provide a clear indication of their commercial intentions. Our group will continue to work on our numerous projects following our vision of creating synergies and of course we’ll wait for prices to rebound.
REMAR PETROLEUM is based in London (UK) and is an international commodity company that manages acquisition, resale and distribution of commodities to the worldwide markets.