COVID19 has claimed its latest victim. Who is this newest victim?
Shell, yes, shell!!
The massive global oil giant with the yellow sign. Whenever we drive down a road, wherever you are on the planet, you’re likely to see a petrol pump which is owned by Shell, which is Royal Dutch Shell and is owned by the Dutch royal family.
And they are taking an £18bn hit because of COVID19.
My goodness me. What is going to happen here?
Let’s have a quick conversation about this.
Yes, Shell Oil has warned of an 18 billion dollar hit to their books due to the oil price crash, and a plunge in fuel sales.
And it expects a 40% drop in fuel sales in the second quarter compared to last year. Some are expecting it to remain about $25 a barrel for the rest of the year. And it slashed forecasts for 2021 and 2022 from $60 to $40 and $50 respectively.
What does that mean?
I’m asking you please to read between the lines!
I’m saying is that these guys are trying to fool the market. They have absolutely no idea what is going to happen. They are trying to stop people from rushing out of their stocks and the energy sector as a whole.
So they try to say that, OK, we expect to be around $25 a barrel for the rest of the year.
How can they make that statement? Let’s see what happens when the markets crashed in March.
Oil prices went into the negative, can you believe that they went into the NEGATIVE!
That knocked these guys out.
Now we’ve got talks of a potential second wave of COVID infections which is already shutting down various regions of countries in Europe and the US.
Another lockdown…will crush all the markets again.
So I’d say that when they say they have slashed their forecasts for 2021 from $60 to $40 and $50, respectively, this is aimed at the uninformed investor.
Let me make something very clear.
What is an uninformed investor? The uninformed investor doesn’t mean that somebody is stupid.
Absolutely not. It’s just that they put their faith in other people to invest for them or trust what comes out of the mainstream media narrative.
We really and truly need to be looking that beyond that.
Now more than ever, it is so important that we should NOT follow the crowd.
The markets are full of phantom money pumped in by central banks and governments, giving the impression that they are recovering.
No doubt, Shell will be given massive bailouts and also paint the picture that they have recovered from the COVID shock.
Trying to restore faith, saying to people, don’t worry, we’re still in here. Please invest in us!
Please don’t leave us!
I keep saying this time and time again.
Unless you’re a seasoned trader by trader, and by that I mean, you’ve been trading for three to five-plus at a minimum then avoid any participation in the stock market and cash out asap. We don’t know what is around the corner and you are in danger of losing out big time here.
And precious metals are always the right place to start.
I’ve got a free masterclass on precious metals.
Click here for instant access and protect yourself from the crash of a lifetime