POO remains stuck range bound between 40 and 50 US$. If it goes over 50 US Shale restarts production. Under 40 the Saudis start feeling the pain and make supportive comments whilst continuing to flood the market.
There seems to be a deadlock so long as the oil storage glut remains and no one wants to give in. Where is the solution to rebalance the market?
I can’t see the Saudis going for a cut at next month's OPEC meeting in Algeria.
How long can the likes of BP and Shell maintain their dividend payments in the present conditions?
Something has to give. Comments /opinions invited.
prices broke above $50 a barrel for the first time in five weeks as hope that the world’s largest suppliers may act to cut the glut in global supply continues to drive prices higher for a sixth consecutive day.
Most analysts recommend “holds” on BP Analysts’ ratings for BP (BP) show that 31% of those covering the stock rate it as a “buy,” and 61% rate it as a “hold.” The highest 12-month price target for BP stands at $40, indicating a 20% rise from its current level.
However, 8% of analysts rate BP as a “sell.” The stock’s lowest price target of $33 implies a 1% fall. The stock’s average 12-month price target stands at $38, indicating a 14% rise from its current leve
Mad Dog, BP Plc’s drilling project deep in the Gulf of Mexico, could be Exhibit A in the oil industry’s war on cost. When the British oil giant announced the project’s second phase in 2011, it put the price at $20 billion. Last month, after simplifying plans and benefiting from a sharp drop in everything from steel to drilling services, Chief Executive Officer Bob Dudley said he could do the job for $9 billion.
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