‘More Pain Coming’ To Oil Sector: Energy Investor

on July 16, 2015 at 2:00 PM

Boom Goes Bust: Texas Oil Industry Hurt By Plunging Oil Prices

Oil producers have shown reluctance to draw down supply while societies have yet to find a universal replacement for oil, which will keep prices lower for the immediate future, one energy investor said Wednesday.

“I think it’s still early days and we have more pain coming,” said Gregory Beard, global head of natural resources at Apollo Global Management, at the Delivering Alpha conference presented by CNBC and Institutional Investor.

Both West Texas Intermediate and Brent crude have shed more than 45 percent in the last year, hitting bottom lines and stock prices for oil companies. Prices may stay steady or fall even more, as many developed countries have yet to find a “silver bullet” to replace oil and further soften demand, Beard contended.

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