How Mobius anticipated COVID-19, and what we stand to learn from it
Houston is hurricane country, but disaster readiness is about being as ready for acts of man as acts of god. It’s about taking the data we smartly aggregate and analyze and making sure it’s always available and effective. Our clients often tell us they have no idea whether we’re in the office or out of it.
It was a Sunday in mid-March when Saudia Arabia kicked off a price war with Russia, which facilitated an unprecedented 65 percent drop in the price of oil just as the blistering effects of a global pandemic created the largest destruction of energy demand in the history of mankind.
We were on it.
We reached out to our clients to help them hedge their positions, keep them in compliance and manage their physical assets. If your portfolio took a bath this spring, you weren’t working with Mobius.
The market swings that played out in March and April were extremely improbable. But we saw them coming, and we helped our clients understand both how to mitigate risk and prepare for the magnitude and duration of the losses to come.
We know this because we’re a team of the sharpest and most experienced operators in the industry. But what we work very hard to do is back this conventional wisdom up with data. Instead of issuing trite statements to reassure jittery clients during this pandemic we put our heads down and worked to help our clients understand how price impacts capital structures, how long they can survive unthinkable scenarios like when crude goes to zero, how they can be sure they’re selling physical molecules in the eye of this storm.
The market can remain irrational longer than you can remain solvent.
Those who wield information — and especially data — wisely will be able to create scale within their businesses even during these terrifying times.
Be they the product of pandemic shutdowns or something else, you can forget about reliability in energy demands.
That means winners and losers. The winners will find and deploy subject matter experts to respond smartly to this wild ride and consolidate wealth.