Oil prices - Hold on tight

Oil prices may be in for a bumpy ride:
  • Saudi ARAMCO is to sell some shares to the public.  While most of the discussion has been around the valuation – $1.7 Trillion (With a “T”) or $2 Trillion (they have settled on $1.7T).  The real question is can it sustain a dividend while acting as the “buffer” in the world markets?  Today, when oil prices decline, ARAMCO pumps less to drive prices up.  Can it still do this with public shareholders?  My guess is the Saudi government, which maintains control, will keep turning the spigot off and on as needed 
  • US “frackers” are fracking less – i.e. production will be flat to declining 
I know that several people will ask what that means for the price at the pump….my guess is the direction will be up and probably more volatile.   
 
On a happy note, a major client just recognized AutoO2 as their “Global best practice in Load Building.”   They are saving a lot of money!