Heard earlier on the radio this morning that some are expecting $65 a barrel for a short period to 'smoke out' some smaller producers leaving the larger players only in US fracking creating barriers to entry for new smaller companies in the US market...it will be interesting what Russia does in the next few days...
OPEC - Oil Price
For anyone interested have a look at the Gulf Daily News website. This is the Saudis getting even with Iran and Russia who they blame for the Syria/Iraq/ISIS mess. At the same time the GCC is trying to undermine US shale oil. What the Saudis are not saying is they're quietly storing 350mln bpd of production for later local consumption plus very private SE Asia discounted sales also. Russia, Iran,Venezuela and Nigeria will have to seriously tighten their financial belts. The interesting thing is another OPEC meeting in June at which time members will review the situation. Meanwhile the GCC will be hoping a severe northern winter will take up some of the slack and by June next at below $80-85 even OPEC will be starting to feel the financial pain hence the proposed meeting. I suspect we will see an average of $80-82 oil price over winter with spikes of $78 or 85 depending upon the weather. But that should not make any difference to FOGL as any real drilling is not until Q2 next year and any production in 2018/19 by which time we should be back to $95 or so. With production costs at $35 according to PMO this one is robust so merely patience is needed.
Steady as she goes. Holding up better than RKH
Flabbergast - Guilty as Charged !! Pre forming the oil company, that's why I know Riyadh etc quite well, plus some of the Saudi major players.
Experts expect it to hover between 75 - $85 short to medium term... So you might be waiting a while.. This will start to move soon.
Brent oil crashed to $72 a barrel today....25p is about the price now for FOGL, I am waiting for a further drop.
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