The Brent, or crude oil as we know it, is one of the gigantic and expensive business around the world with a lot of money, manpower, energy, and stakeholders involved within. From rig to the pump, its prices, and supply matter a lot.
It has a direct impact on our daily lives now. Since past few years, the price hike and sudden fall have made almost everyone unsure as to if what will happen next.
We saw the price of crude oil increased by 20% which reduced the companies closure and redundancies and the industry was able to stabilize. Here are four reasons that indicate that 2018 can be a good year for the oil.
1-The Graph shows good time is near: In 2014 the crash in the Brent crude was the worst we have ever witnessed in this generation when its value dropped by 60% in a time frame and at that time there were also some dark predictions for the industry’s future.
But now looking at the graph we can luckily say that it is leading in the right direction and shows that the worst crises have passed. However, oil is a necessity and need for thousands of everyday business.
2-The market is stirring: The market which was seen in trouble since the last 2 years is starting to change and it seems that it has now comfortably past the worst of the crises.
The year 2017 saw more M&A than the year 2016. We saw many people leaving their jobs and starting something new but now we have seen many new companies are emerging and the operators are giving green light to more and more projects.
Now no projects are stopped or canceled or put on hold but we have seen an increase in the bid and tender activity and projects have started moving again.
It might not have any an immediate financial benefits but it inspires optimism in the market essential for a continued upward trend.
3-Political Sway: Throughout all the downturn many were blaming an early refusal to cut the production of crude oil from the Saudis.
Everybody’s eyes were on OPEC but after the meeting between OPEC and non-OPEC in November 2017, an agreement was signed to prolong the existing cuts at least at the end of 2018. If supply drop, its demand will grow and prices will rise.
4-Hiring is happening: After suffering two long years of its dropping prices, the good time is near. The biggest luxury in the market is it well-paid people and hiring and firing trend are one of the biggest indicators of the market.
There is some positive news coming from the market to provide product and services with a hope to stat up the existing companies and bring new technologies to the market. This New Year many companies and are looking forward to capitalizing on the surplus of talent on the market.