Suspect we may get to 1000bopd quicker than many think.
0.8p will be reached very quickly after that then to your 2p average:
By Barani Krishnan NEW YORK, Feb 12 (Reuters) – Global oil prices surged as much as 12 percent on Friday after a report once again suggested OPEC might finally agree to cut production to reduce the world glut, while a bounce in stock markets fed appetite for risk.
Despite the strong daily gain, oil prices were poised to end the week down as much as 5 percent.
The United Arab Emirates' energy minister said the Organization of the Petroleum Exporting Countries was willing to cooperate on an output cut, the Wall Street Journal reported on Thursday after crude futures settled in U.S. trade.
Many traders were skeptical at first about the report, noting that Venezuela and Russia had tried in vain earlier in the week to stir Saudi Arabia and other major producers into agreeing to output cuts.
But after a 75 percent price slump since mid-2014 that has taken crude prices to more than 12-year lows, many were inclined to believe that a rebound was due sooner or later if production tightens or demand picks up.
"We expect declining U.S. oil production, in particular, to drive the oil price back up to $50 per barrel by the end of the year," Frankfurt-based Commerzbank said in a note.
U.S. crude was up $3.25, or 12 percent, at $29.46 per barrel by 1:09 p.m. EST (1809 GMT), just off the day's high of $29.56. It hit a 12-year low of $26.05 in the previous session. For the week, it was on track for a 4.5 percent loss.
Brent crude rose by $3 to $33.96 a barrel, after having slid to below $30 on Thursday. Weekly losses were pared to about 3 percent.
Crude prices extended gains after data showed an eighth straight weekly drop in the number of U.S. rigs drilling for oil. Oil also got a boost from a rally in equity markets, with both U.S. and European shares rebounding from recent weakness.
.N Some cited Monday's President Day's holiday in the United States, saying fewer players wanted to have a short position in oil ahead the longer weekend break for the New York crude market.
But others, like Tyche Capital Advisors' Tariq Zahir, were hoping to profit again from bearish bets once the rally peaks. "It gives me great opportunity to put out new shorts in crude spreads," he said.
Many expected wilder price swings in coming weeks.
"It's not a one-way price movement anymore," said ABN AMRO's senior energy economist Hans van Cleef. "We will see a period of high volatility".
Thanks Celtic. When we get authorisation for our 3 new rigs I wonder if they will drill and drill or will they hold back with the oil price as it is? Would still like to reach 1000 BOPD asap. My average here is 2p so a long way to go for me.
You are right robin our cash burn is very low right now, not least because of our decision to sell of our drilling operation to RRDSL, that really was a masterstroke in the current climate. We have cash in the bank and great prospects so I do honestly believe that better times are ahead. Finally OPEC are starting to realise that their position is not sustainable. At this rate estimates are that Saudi would be bankrupt by 2020 with Venezuela and some of the other member states well before that. Those that are suggesting holders sell at his low sp do not have anyone's interest at heart other than their own. I am not rose tinted in my vision but having waited this long and averaged down to the best of my resources I am certainly not going to hand my shares over for someone else to benefit from the inevitable recovery in the POO.
We closed back above 0.2 despite the best efforts of traders to keep it below that level. I see no reason why we should drop in the next session other than as a direct result of a DMA trade with the sole intention of that. We will no doubt open Monday with a cheap sell below 0.2 but that will then give way to buying. With the current level of trading and the huge spread it really makes no difference to future, time to sit on your holdings if you are not a day trader. Our time will come and the swing traders will go looking for other easy pickings.
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