Listen to City pull your dick talking production increases and $60 oil. he has never been right no one not ever. Demand is not Not NOT going to come back. He has got to be right because they have Hugh investments in oil companies and recent acquisitions…..
July 22 (Reuters) – Baker Hughes Co posted its second consecutive quarterly loss on Wednesday and said it would rein in costs as it prepares for a longer period of volatility in oil prices that has crushed demand for its oilfield services. Oil producers halted drilling new wells and drastically cut their budgets following a collapse in crude oil prices in March and April, clipping demand for services offered by Baker Hughes and rivals Schlumberger and Halliburton. Revenue from Baker Hughes’ oilfield services business, which roughly accounts for about half of total sales, tumbled 26% to $2.41 billion in the second quarter. Total revenue fell 21% to $4.74 billion. U.S. crude futures were trading around $41 per barrel, at the bottom end of what most producers need to be profitable, despite a recent uptick. Some smaller oilfield service firms have filed for bankruptcy, including fracker BJ Services, in which Baker Hughes holds a minority interest, and fracking sand provider Hi-Crush. Baker Hughes has cut its 2020 budget by over 20% year-on-year and has disclosed plans to accelerate the exit or shutdown of non-core product lines, including North American full-service drilling and completions fluids business. Net loss attributable to the company widened to $201 million, or 31 cents per class A share, in the second quarter ended June 30, from $9 million, or 2 cents per share, a year earlier. The company said the quarter included an income-tax gain of $75 million related to the CARES Act. Excluding charges, Baker Hughes lost 5 cents per share, worse than analysts’ average expectation of 1 cent, according to Refinitiv IBES data. Nick Note: i am seeing the biggest loses for big oil EVER. But still they spin increasing demand. Inventories are at record levels, Demand at record lows. And OPEC is increasing production. How do you think that will turn out?