I've heard we get whatever the spot price is and 50% is hedged at $50 a barrel? I'm in the industry and was speaking to some guys that work in Iraq. When WTI was in the low 40's they were only getting $14 a barrel. This was due to the quality of the crude and the further processing it required. Erskine is highvalue sweet condensate, which is why it probably fetches a premium.
I doubt current oil prices will impact upon the price Walker (CEO, Serica) will pay for new acquisitions. He's a wily operator and he'll extract best value from the money he spends on buying more producing assets from BP (if the news reported is to be believed)..
I bet the oil market will balance by eoy. OPEC (the Saudis in all but name) need a stable oil price for their Aramco float and they'll pull out all of the stops to make that happen. I'd like to think there's a weighted probability of upside in oil rather than downside but who knows what the US Shale will produce
The MM's will reroute trades through NEX (ISDX as it used to be known) to suit their position at the time. If they are short they will try and create the impression that buying is muted and slow by rerouteing thru' NEX rather than direct through AIM trades page. I reckon some MM's on SQZ are short of stock
either way I also find it slightly pernicious that MM's are allowed to do this and create a smokescreen rather than adhere to a culture of transparency
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