What could be funnier than this? Silly Alan Rusbridger launches his 'keep-it-in-the-ground' Grauniad campaign, trying to pressure institutional investors to divest their holdings in hydrocarbon producing companies. What happens? The price of oil promptly rises, and with it - strongly - the stock prices of oil and gas companies, as nicely plotted by FT Alphaville here. "The Guardian as contrarian indicator" - an amusing idea.
As the FT goes on to say, there will of course be more to report on this as the months go by. Plus, the crude price rebound looks a bit overdone. All the bank analysts are picking the price to increase steadily through 2015-16, but I'd take that as another contra-indicator (not to say self-interested wishful thinking) and point out that the US shale oil (and gas) producers are undeterred by OPEC's efforts. There must be the chance of another material down-tick later this year.
ND
I notice that the Church of England is now the religious wing of the Guardian. How do I vote for disestablishment?
ReplyDelete"US shale oil (and gas) producers are undeterred by OPEC's efforts"
ReplyDeleteNot sure if it is becuase they are are undeterred or more the they have to keep pumping to maintain debt payments no matter. I've seen somewhere that and expected rise in supply would be expected no matter a falling price, due to the hamster wheel nature of it. Personally think it will dip later.
I am also out of coherent sentences today
ReplyDeletePersonally think it will dip later
ReplyDeletenever mind the grammar Hovis, just keep agreeing with me (+: