Crude oil prices seem to be the single most important determinant of oil companies’ performance. For this article, we ran some tests to find the correlation between Brent Crude prices and a few general performance indicators for oil companies.
We found that oil prices do indeed affect oil companies’ performance to a great degree, but the extent to which they do so depends greatly on the companies’ positioning in the industry’s value chain.
Our results indicate that not only do crude oil prices act as leading performance indicators, they also determine whether it is feasible for the oil industry to explore, extract, refine and sell crude oil and other petroleum products. XOM.
No comments:
Post a Comment