They say it’s always darkest before the dawn, which is comforting unless you’re in the oil industry and dawn could be 10 years away.
Bloomberg.com reports from International Petroleum Week, where energy industry members gathered under a dark cloud.
The headline says it all: The Oil Industry Got Together and Agreed Things May Never Get Better.
The low prices that have hammered the industry – prices are near a 12-year low – may cling to the market for a decade, thanks to China’s economic slowdown, according to Ian Taylor, chief executive officer of Vitol Group, the world’s largest independent oil trader. Meanwhile, production from the U.S. shale industry will limit any rally.
The only people enjoying the slump are oil traders, according to Bloomberg. Futures prices of oil are higher than the current price, so traders can make money by keeping oil in storage. The difference is so large that storing the oil in supertankers, rather than on land, may become profitable.