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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (5919)	7/10/2020 11:04:05 AM
From: robert b furman	Read Replies (2) \| Respond to of 13800

Hi El, I saw that report and have picked up more XOM and KMI. These are long term adds for me. I'm determined to wait out however long it takes for the glut to be consumed and the price of oil to equal or exceed the cost of getting it out of the ground. There is an excellent article by Andrew Butters who analyzes China's fossil fuel demand after it suffered with SARS. Due to health preferences, the Chinese chose to drive their vehicle (known to be clean and safer) to the point where gas consumption increased a year after the disease was controlled. It's a good read! seekingalpha.com Once this Covid is controlled, I think it is fair to say the same response will be experienced ON A GLOBAL BASIS! Total Petroleum products consumption for the week of July 3rd has been defined as follows (surprisingly strong compared to 2019's hat running pace. (I think this is being missed on a world wide basis) : Total products supplied over the last four-week period averaged 17.8 million barrels a day, down by 15.1% from the same period last year. Over the past four weeks, motor gasoline product supplied averaged 8.5 million barrels a day, down by 12.5% from the same period last year. Distillate fuel product supplied averaged 3.5 million barrels a day more than the past four weeks, down by 10.3% from the same period last year. We are in peak consumption and by the time the world acts as they did in China, production will be down and demand will be up. I don't think it will be too far off. We will have bad news about BK's in the oil patch as those with good balance sheets snap up the bargains. I'm still thinking this is a long term buy of a generation that will pay solid dividends as long as I'm alive. I went into it with a long term hold and as long as my dividedns keep coming in, I think it is a high value sector to be patiently accumulating. I could be all wet, but that's my read and expectation in the longer term view. If you bought semi's in 2000 -2003 and banks in 2008 you are doing very well. I think the crude and energy sector will be tha next looking back no brainer. To me the bubbles are in EV and renewable energy - neither of them are cheap and in tough times with inexpensive fossil fuels the embracement of more expensive alternatives will be very slow in adoption rates. Thanks for the link! Stay well buddy! Bob