Tips for surviving a correction

[EricL]

(03-09-2020, 08:11 AM)crimsonghost747 Wrote:

(03-09-2020, 07:08 AM)divmenow Wrote: who's buying CVX, RDS.A, CVX or BP this morning. Any brave takers lol

I might nibble a bit on Shell, they will survive this.

While the Saudi's can of course pump more and cheaper than anyone else, it's basically their only income source. They can, and might want to, keep the price down for 6 months or so to drive US shale out of business but their country just cannot survive at it's current state with oil around $30 for years.


The longer these low prices last the uglier it will get for western oil companies, but at some point the prices will go back up to a level where Shell is profitable and they can cover the dividend.

Shell, for a long time now, has not been a bet on oil price going higher. It's a bet, that currently yields something like 11%, that they can maintain that dividend.

Might want to look into Shell's exposure to LNG. That market has tanked as the US ramped up LNG production, and Shell has bet very big on the sector.