Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

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Market Insanity

Will the Oil Gut Kill Chevron and other oil companies?

The danger to companies like Chevron is that oil is slowly becoming a bulk commodity with a low value. Companies will still make money in the oil business but profits will be far lower because prices will be low.

Instead, oil producers like Chevron will be more like miners such as Rio Tinto Plc (NYSE: RIO) with lower share prices and less cash. RIO was trading at $57.82 a share on 14 February 2018 while CVX was trading at $112.14 a share.

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