Bloomberg reports on major oil company woes:
“Welcome to year two of a supply overhang so persistent it’s upsetting industry expectations that the market would return to a state of balance between production and demand. It’s left analysts befuddled and investors running to the doorways as the crude market threatened to tip into yet another bear market, dashing hopes that a slump that began in mid 2014 would show signs of abating.”
They include a chart of Exxon’s earnings:
I think they are missing the story… Amazingly, some major international energy companies are still showing a profit!
And, I don’t understand the focus by financial news on defining bull and bear market by a 20% move.. According to above, we are about to tip into another bear market? After dropping from $100 per barrel, a move from $27 to $32.40 is considered a bull market? It makes no sense..
Here is the link to the Bloomberg article:
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