(TRUNEWS) David Haggith, a TRUNEWS guest, financial commentator, and author of ‘The Great Recession Blog’, has spelled out the consequences of the current oil supply glut.
In his website analysis, Haggith points out that companies are being forced to cut jobs. Shell has been hard hit.
“These are tough times for our industry,” Paul Goodfellow, Shell’s VP in the UK and Ireland, said in a statement. “We have to take further difficult decisions to ensure Shell remains competitive through the current prolonged downturn.” (Oilprice.com)
The glut has also caused an increase in defaults for banks in the Persian Gulf. More than 65 percent of banks in the region reported an increase in defaults in the first quarter.
Tankers are hanging out at sea, as there are no storage facilities on shore. This causes a reduction in profits. In China, vessels have crowded the port of Qingdao because Chinese loans are being paid back in oil from countries that have run out of money.
A general view of a crude oil importing port in Qingdao, Shandong province, in this November 9, 2008 file photo. REUTERS/Stringer/Files
A general view of a crude oil importing port in Qingdao, Shandong province, in this November 9, 2008 file photo. REUTERS/Stringer/Files
One Great Recession Blog reader claims he sees tankers everywhere along the Norwegian coast.
“Outside my window, I can see 6 supply/standby ships from the oil industry without assignment! And they are everywhere along the Norwegian coast! So Norway is in no way doing as great they like to show off to the world. It’s going downhill…..”
To read more of David Haggith’s article, click here.
The post Oil market future outlook bleak, according to TRUNEWS guest appeared first on TRUNEWS with Rick Wiles.
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