Abdullah Al Badri Secretary General of OPEC reported as saying that the output of higher cost oil such as shale would be curbed if oil remains at $85 as OPEC enjoys lower costs and will see higher demand for its crude long term. If prices stay at $85 we will see a lot of investment, a lot of oil, going out of the market. About 65% of producers have higher costs, not OPEC. This was at the Oil and Money Conference. - so it looks like OPEC will not cut production and has settled for $85, but the assumption is the price now referred to means Saudi blend as the swing, if so Brent should be $90-92 perhaps a bit higher if the northern winter is harsh this year
Brent crude price for Dec 14 Crude Oil (Brent) USD/bbl. 87.22 +1.19 +1.38% Dec 14 Not that far off... http://www.bloomberg.com/energy/
There's an MMs game going on here to hold the s/p at 27-30p pending probably the final 3D bits and the oil price. They won't want to be caught long or short pending the next drilling albeit if the 3D is good and has the independent CPR I suspect we will be back again to 32-35p again and then a slow rise towards rig arrival/well spud. A lot depends on Brent going back to $90-92.
Botak a contract is fully binding between all parties once signed. There's no 'cap and collar' as in mortgages. But the consortium can always try !!
It's a good point.. But most likely when the contracts signed so is the price, afterall who would take on a contract without fixing the price??
shenanegans going on here..
Up 4.4% one minute and then down 2.6% the next.. jeez I love aim.. not.. The sooner Fogl can find oil get the share price up and list on another index the better.. They must have been servicing the 282,680 share trade..
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