Oppenheimer’s senior analyst Fadel Gheit sees coming dividend cuts across the energy sector.
“There will come a day where dividend is at risk and that day is today. Not only Chevron, but the rest of the industry is currently funding dividends through additional borrowing. You can’t do that forever.”
Woven into this discussion on CNBC’s power lunch is yet another oil price prediction, this time by Raymond James senior energy analyst Pavel Molchanov.
“Oil prices at $30 are completely unsustainable … Saudi Arabia is running $100 billion budget deficit. It’s not something that can last forever,” said Molchanov, adding that he sees a “$60 minimum by the end of the year.”