UK 19:27 Friday, 23 October 2026
Breaking news and expert analysis on fast-moving AIM and LSE listed shares
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
It seems that OPEC is willing to keep production at the same level 30 million barrels per day as before. The oil price has duly tanked so is this bad news for all oil companies?
Already a member? Sign in
• All premium articles
• Tom Winnifrith’s Bearcast
• Access to all the entire nearly 13 year archive
• ShareProphets Daily Newsletter
Cancel any time
This area of the ShareProphets.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ShareProphets.com. ShareProphets.com does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.
Comments
Steve
I agree – short to medium oil is likely to trade around $70 but this will stimulate longer term demand and put a brake on some of the developments that are needed to maintain medium term supply.
There are some cracking bargains to be picked up – Colombia Putumayo producers, Amerisur, Gran Tierra and Petroamerica especially, all with strong balance sheets, well down the production cost curve so still generating cash at levels far below today’s price. Only risk is political – not necessairly FARC which is nothing new, but more that the country is now on a good path to stability but reduce oil revenue could stagnate growth, reduce social programs and cause unrest – still seems a fairly low risk though.
Richard
Chris, for us less informed people would you consider put a list together best to worsed.
Here,s hopeful.
wildrides
I agree to an extent ……….. but the main driver will be opec members ability to hack the price opposite their countries fiscal budgets for 2015 and 2016 . Only three countries are budgeted ahead for 80 dollar or less , the rest of opec are budgeted for much higher , and some at over 100 dollars a barrel . Its not about the production price rather the GDP of the members . Some want Russia to have some pain as well as drive down shale gas production . But the length of time they ( opec members ) can stand this price is very limited before calling an emergency opec meeting to cut production . The current price is hammering Russia into the ground . The cost will be 140 billion to Russia from lost dollar opposite sanctions imposed by the world for the invasion only costing 40 billion . So you can see what an effective additional sanction the low oil price is . Putin will be on his knees within a year . Its all about politics behind the scenes and suppressing shale is just an added bonus to that .