Oil Investors Are $230 Billion Poorer a Week After OPEC Decision

[marmar]

Oil Investors Are $230 Billion Poorer a Week After OPEC Decision


(Bloomberg) Investors around the world have seen $230 billion wiped off the value of oil companies in the week since OPEC sent crude prices plunging to a seven-year low by abandoning its output limit.

Companies producing, refining, piping and exploring for oil, along with those that provide them with services, had a market value of about $3.73 trillion as of Friday, compared with $3.96 trillion on Dec. 3, the day before the Organization of Petroleum Exporting Countries’ meeting in Vienna. Exxon Mobil Corp., the world’s biggest oil company, has lost $11 billion of its value and PetroChina Co. more than $16 billion, according to data compiled by Bloomberg.



Crude’s slump has lasted for more than 18 months, making it one of the longest downturns in decades and forcing companies to slash spending, reduce their workforce and delay projects. Energy companies are the worst performers in the MSCI World Index this year, even below mining companies that have suffered a slump in the price of commodities from iron ore to copper.

“Companies must repeat the same size of cuts they’ve already announced to be able to cope with oil prices this low,” said Alexandre Andlauer, a Paris-based oil industry analyst with AlphaValue SAS. There will be “further lay offs to come with oil at $40 a barrel,” he said. .........................(more)

http://www.bloomberg.com/news/articles/2015-12-11/oil-investors-are-230-billion-poorer-a-week-after-opec-decision

[yeoman6987]

1. I'd say that includes most of us

401k and mutual funds have energy stocks in them.

[Nye Bevan]

2. This makes gas cheaper, however. (nt)

[GummyBearz]

4. Yea, by about $10 a month...

I suppose I could put that $10 away and in about 9 months buy 1 share of chevron stock. wait.. $10 commission.. have to wait 10 months

[Ed Suspicious]

5. If I had enough money to worry about my retirement fund I'd be worried. $10 a week is a years worth

of copay on diabetes medication.

[Buzz Clik]

3. There is a lot of economic suffering in countries that depend upon revenues from crude.