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Page added on December 21, 2015
Harold Hamm calls for oil correction
Continental Resources Chairman and CEO Harold Hamm said Monday that 2016 will be the year oil market corrects as supply and demand come into balance.
“We’ve seen tremendous growth in the market for our supply. It’s up about 3 percent on an annual basis, so it’s quickly correcting,” he told CNBC’s “Squawk Box.” “2016 will be the year for correction, and we estimate the first half.”
Once market watchers see the supply and demand lines cross, prices will begin to recover, he added.
Global oil markets are estimated to be oversupplied, with about 1.5 million barrels of crude. Commodity prices have plummeted from highs above $100 per barrel amid a rout that accelerated after OPEC decided to forego production caps in November 2014.
Globally traded Brent crude oil fell to its lowest level since July 2014 on Monday, breaking below the $36.20 price level hit during the depths of the financial crisis. U.S. crude threatened to fall below $34.
8 Comments on "Harold Hamm calls for oil correction"
paulo1 on Mon, 21st Dec 2015 8:16 am
Maybe he can make enough to pay for his divorce, at least with hype manipulations?
joe on Mon, 21st Dec 2015 8:32 am
Balance? They planning a massive economic boom like the last one? There has to be either a cut by OPEC, or a bust of tight oil. With free, or nearly free money out there, then it’s possible that Saudi could move, not until it’s sure it’s done it’s deals to keep Iran out as much as possible. Of course Irans real weapon is gas, which Saudi does not have much of, so higher oil prices locks in higher gas sales, lower oil prices means people have to buy Iranian oil to stop it causing a bigger glut, so Saudi will cut, if it doesn’t, tight oil is finished. They can’t really lose this one as long as they try to stop toppling each others governments, but that’s not going to happen either.
shortonoil on Mon, 21st Dec 2015 9:28 am
Prices are down 65%, and demand is “supposedly” up 3, and Ham thinks the market is rebalancing? A twelve year old operator of a lemonade stand would have a better grasp of reality than that! This is not a rebalancing it is a GOING OUT OF BUSINESS SALE Many people are attempting to repeat absurdities in the hope that if they are said enough times someone will believe them. The market can not be rebalanced with a 3% increase in demand driven by a 65% decline in price. Obviously, for anyone who can add two small numbers together, by the time the market has rebalanced the producer has gone broke. Ham is attempting to tell us that up is down, white is black, and 2+2 = 5, and we are supposed to believe it because he said so. Sorry, Mr. Ham, not everyone here was born last night!
http://www.thehillsgroup.org/
onlooker on Mon, 21st Dec 2015 9:30 am
Magnificent summary of our economic situation Short and in calling out this idiotic article.
rockman on Mon, 21st Dec 2015 10:26 am
Harold is just preaching to his shareholders: Plunging oil prices helped knock his fortune down by $11.3 billion in one year, making him The Forbes 400’s biggest loser. He’s not worried: “I’ve seen this 6 or 7 times.” He has also had to contend with a very public divorce battle: last November a judge ordered Hamm to fork over $1 billion to his second wife.
And while he may have seen recoveries of those “6 or 7 times” at age 70 he, like the Rockman, probably won’t be around for the next boom. As I told one of my depressed cohorts a month ago: had we passed away a couple of years ago we could have died happy. lol.
shortonoil on Mon, 21st Dec 2015 11:43 am
“As I told one of my depressed cohorts a month ago: had we passed away a couple of years ago we could have died happy. lol.”
Bet that cheered him up! lol
rockman on Mon, 21st Dec 2015 12:52 pm
Just dropped that line on my 76 yo owner at lunch. Got a good laugh out of him. You can either laugh about this crap or cry. And I ran out of tears in the early 70’s. lol.
Davy on Mon, 21st Dec 2015 1:59 pm
These are the kind of situations that scream disaster:
http://www.zerohedge.com/news/2015-12-21/real-death-cross-oil-markets