Colver Technologies says growing volatility and “whipsawing” in prices indicates that a bottom in prices is at hand.
Colver Technologies says it is convinced that oil prices are nearing a bottom and doesn’t expect sub-$40 oil to become a reality any time soon. The China-based, small-scale GTL solutions provider cited what it called “whipsawing” price action in the oil markets last week as marking the “line in the sand” beyond which oil bulls were not prepared to allow prices to drift.
Gus Stuyvesant, Chief Operating Officer at Colver Technologies, said, “There’s a feeling among many market participants that the selloff has been overdone and that a turn in oil’s fortunes is imminent.”
Asked why he thought oil would find support at $40, Stuyvesant replied, “Look, the supply side argument is only one aspect of this dynamic. Oil prices were at $100 a barrel because the Federal Reserve was printing so much money. Speculators borrowed money and ploughed it into, among other things, oil and stocks. Then they pulled the plug and eventually, the market realized there was too much supply. The Fed and other central banks are now busy trying to sell people the deflation bogeyman so they have an excuse to start printing money again. When that happens, oil prices will be off to the races again.”
As a consequence of the flurry of activity the company is enjoying as a result of the current turmoil in the oil market, Colver Technologies has, in recent days, become the subject of rumors that it could be considering going public with an initial public offering but Mr. Stuyvesant quickly denied the reports as idle speculation. “With energy markets in such disarray right now, why on earth would we be looking to go public? Sentiment is pretty bearish right now and there are far bigger, far more profitable companies than us who are nursing stock prices that are down more than 40%. An IPO would make no sense at all for us right now,” he concluded.
About Colver Technologies
Colver Technologies’ modular GTL systems revolve around the Fischer-Tropsch reactor, a conversion technology developed in the 1920s by Franz Fischer and Hans Tropsche in Germany in 1925. It facilitates the production of significantly cleaner-burning liquid fuels like diesel and jet fuel from natural gas that contains no sulfur. We are committed to doing our part to drive uptake of GTL fuels as global efforts to reduce emissions increase and have invested heavily to ensure the continuing development of this highly attractive alternative to conventional energy production.
Contact Colver Technologies:
Longzhimeng Asia-Pacific Center
22 Pangjiang Street
Dadong, Shenyang, Liaoning
China
contact@colvertech.com
http://www.colvertech.com
862422599383