Dividends and OPEC, allies reach deal to cut oil output

If you have been asked to stay at home either to work or apply for government money, you have not been driving. If you have been driving, you will notice driving in the cities is very similar to the biggest holiday of the year – it is easy to drive. HUD Secretary Ben Carson said his normal drive of 40 minutes to downtown Washington takes 10 to 15 minutes. In countries around the world, similar conditions exist which means fewer people are buying gasoline.

At the same time, Saudi Arabia and Russia decided to increase production to push down the price of oil to increase pressure on US oil shale producers. The only thing which resulted from the feud was in the world of supply and demand, supply increased, demand fell and prices fell.

President Trump did not like the low oil price, at least he talked about it during his daily virus updates and finally Saudi and Russia will curtail output through May and June by 10 million barrels a day from precrash levels In an article by Jeffery Jones and Marieke Walsh of the Globe noted the deal did not appear to be contingent on countries outside the OPEC fold including Canada and the US imposing more cuts on their industries.

Linking to dividend paying companies, if your investments are tied to commodities they are tied to supply and demand curves. Ideally you want companies that have the ability to raise prices no matter the demand.

There are more questions than answers, till the next time – to raising questions.

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