Homepage
PR Newswire
08-12-2014, 11:37 AM
Hi all, any opinions about how the recent oil price rout will affect the business of lubricants and specialty chemical companies like AP Oil?
My take is that it won't be good for companies who kept huge stock bought at high prices in the short run. However, if low oil prices are sustained at an extended period of time, overall it'll be advantageous for these companies in the longer term due to reduced cost. Of course, reduced cost may just lead to competitive pricing in their products which at worst, may neutralize any benefits from lower costs.
AP Oil has kept its stock relatively low and with its more than 30 years of experience and track record in this industry, I believe it will at least maintain its current strong bottom line results for the coming years. What do you think?
My take is that it won't be good for companies who kept huge stock bought at high prices in the short run. However, if low oil prices are sustained at an extended period of time, overall it'll be advantageous for these companies in the longer term due to reduced cost. Of course, reduced cost may just lead to competitive pricing in their products which at worst, may neutralize any benefits from lower costs.
AP Oil has kept its stock relatively low and with its more than 30 years of experience and track record in this industry, I believe it will at least maintain its current strong bottom line results for the coming years. What do you think?