first_img – — Jim Rickards’ Brand-New Trading Indicator Today, Jim is showing you how it could be possible to take the guesswork out of trading – potentially handing you the precise moments to buy and sell… Take a look at the demonstration of Jim’s new indicator now by clicking here. A giant American oil company just did the unthinkable… If you’ve been reading the Dispatch, you know the world oil market is in crisis. The price of oil has plunged 71% since June 2014. The world simply has too much oil. Global oil production hit a record high last year. Thanks to technologies like “fracking,” oil companies can now access billions of barrels of oil that used to be trapped in shale rock formations. The Wall Street Journal reported last week that the global economy is oversupplied by about 1.5 million barrels a day. • Giant oil companies are struggling to make money… Last year, British oil giant BP (BP) recorded its worst annual loss since at least 1985. Last quarter, Exxon Mobil (XOM) and Chevron (CVX) both earned their lowest profits since 2002. Royal Dutch Shell (RDS.A), Europe’s largest oil company, made just $3.8 billion in 2015… after making $19 billion the year before. Total SA (TOT), Europe’s second largest oil company, expects to report a huge drop in profits for 2015. These five companies are known as the “supermajors.” On average, their stock prices have plunged 30% since June 2014. • The oil industry is in “survival mode”… Oil companies have laid off more than 250,000 workers since the downturn began. Worldwide, they’ve cut spending by more than $100 billion in the last year alone. Oil companies have sold assets… slashed exploration budgets… and abandoned billion-dollar projects. • But until recently, big oil companies have not cut dividend payments…  Last week, we explained that large oil companies pay some of the steadiest dividend streams on the planet. For example, Shell hasn’t cut its dividend since World War II. Exxon and Chevron have both increased their annual dividends for at least the past 25 years. These giant oil companies have been paying regular dividends for decades, even through the 2001 dot-com crash and the 2008 financial crisis. Many investors view these dividend streams as sacred… as a foundational aspect of the family holdings, like grandma’s ring or the family farm. • ConocoPhillips (COP) cut its dividend by 66% last week… Conoco is the third largest U.S. oil company. It announced horrible results last week. Fourth-quarter sales plummeted 43% from the prior year, and it booked a net loss of $3.5 billion. To cover its huge losses, Conoco cut spending across the board… including cutting its quarterly dividend from $0.74 to $0.25. It is the largest U.S. oil producer to cut its dividend during this oil crisis. Since cutting its dividend, Conoco has plunged 15%. It has fallen 62% since June 2014. Regards, Justin Spittler Delray Beach, Florida February 08, 2016 We want to hear from you. If you have a question or comment, please send it to [email protected] We read every email that comes in, and we’ll publish comments, questions, and answers that we think other readers will find useful.last_img