Sell ​​Oxidant Petroleum Stockpile Before OPEC Meeting?

After the World Health Organization (WHO) declared the Omicron Coronavirus mutation as a “significant difference”, the global economy was hit hard last week. Benchmark oil prices have fallen sharply as market participants expect more congestion from another round of travel restrictions. In particular, OPEC and non-OPEC countries are expected to unveil plans in the next few days to further reduce production shortages as they use strategic reserves to control rising oil prices. Higher Benchmark prices have helped cash flow and then debt pensioners Oxygenated Petroleum (NYSE: OXY) In the third quarter, however, recent macroeconomic growth may be a drag on revenues and profits. While the company is committed to transmitting its accounts and creating long-term value to shareholders, Trefis believes the stock has a low turnover potential in the near future. Highlights of our interactive dashboard Oxygenated Petroleum in the 2008 Recession and now.

So far, the crisis of the 2020 crisis has ended.

  • 12/12/2019 ፡ Chorus virus cases reported for the first time in China.
  • 1/31/2020 ፡ World Health Organization declares emergency health emergency.
  • 2/19/2020: Effective Bonding Signs in China and Depreciation of Major Central Banks Achieve S&P 500 High
  • 3/23/2020 ፡ Pages S&P 500 34% decrease Outside China, Kovid-19 cases are accelerating to a record high on February 19. Oil prices plummeted during the Saudi-led price war in mid-March.
  • From 3/24/2020 ፡ Tight S&P 500 108% recovers By the end of March 23, 2020, the federation’s multi-billion dollar stimulus package would keep the economy afloat for a long time and the vaccine will allow things to gradually return to normal despite many covine infections.

In contrast, here is how Oxygen and the wider market performed during the 2007/2008 crisis.

2007-08 Crisis Timeline

  • 10/1/2007 ፡ Predictable Pre-Crisis High in S&P 500 Index
  • 9/1/2008 – 10/1/2008 ፡ Accelerated market downturn commensurate with Laman’s record (9/15/08)
  • 3/1/2009 ፡ Predictably lower than the S&P 500 index
  • 1/1/2010 ፡ Early recovery to levels before accelerated fall (around 9/1/2008)

Sudden Petroleum Stock S&P 500 Financial Crisis 2007-08

OXY shares fell from $ 63 (September crisis) to around $ 50 in March 2009 (as markets fell), meaning that OXY shares lost 22 percent of their pre-crisis highs. A.D. After the 2008 crisis, it recovered to about $ 78 in early 2010 – a 57 percent increase between March 2009 and January 2010. On the other hand, following the fall of the S&P 500 index in January 2010, it fell by 51% before recovering 48 percent. .

Long-term debt obligations and falling prices are a major wind for shareholders.

Accident Petroleum revenues (adjusted interest and dividends, as well as one-time profit / loss of assets) fell 15% from $ 20.9 billion in 2019 to $ 17.8 billion in 2019. The epidemic dropped to $ 17.8 billion in 2020. A.D. In 2019, Andarko’s acquisition resulted in an increase of $ 28 billion in long-term debt. As a result, more than $ 1 billion in annual interest expenditures are dragging on stock returns. While high inflation in the third quarter is a credit to the company, rising oil reserves in many countries could lead to relative price fluctuations.

Summary

Cowed-19 Crisis Stages

  • First until mid-March 2020 ፡ Fear It has been translated into the rapid spread of the corona virus FactThe number of cases is accelerating worldwide.
  • From the end of March 2020 to fall social distance measures + locks
  • April 2020 ፡ fall- Fed stimulus It eliminates the anxiety of salvation in the near future
  • May-September 2020 ፡ Interest recoveryStep by step lifting the locks – a number of issues that seem to be no more shocking
  • October 2020-February 2021 ፡ unprecedented Increase in covide issues Forcing new round locks across the country
  • The ongoing vaccination drive and gradual reopening drive, beginning in March 2021. Improvement of interest – Market stimulus

The company plans to maintain a sensible capital investment plan with the Developer to help restore long-term shareholders. However, the fall in prices could have a detrimental effect on investors’ returns.

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