We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
romaron, a rant?
Cough
Fever
Loss of smell
I think you're okay.
I just hope it doesn't develop into a continuous rant. There's only one cure for that ;-)
GKB,
Counter productive. The goats would eat his forest.
GLAXXX
Is your local newspaper in wales?
Goat price more stable then oil?
At least your milk supply is secured
Romaron, yes hopefully everyone will help cut including US and maybe more countries.
In my opinion it’s best that could happen enquest.
To fight it with price war and natural balance it might have been to painful for Enquest too long time
That’s the reason I now bought back all shares
There you go L7 being sensible when I was enjoying my rant. Maybe KSA aren't doing heavy lifting but that's what they think. They set up a system/cartel and the free riders (shale) come along and take advantage of their benevolence. It is the perception and we know that MBS is as touchy as Trump and also not a lover of journalists. Both have a distinctive outlook and like to get their own way.
Pelle- they keep bandying this "10 mio bpd cut" but it is impossible that it would be Russia and KSA. That's like 50% of their production. The 10-15 must represent the total if all countries did their bit. We've already issued a RNS saying we're reducing.
It'll be interesting to see how Trump spins this. I thought the Yanks loved cheap oil!
Hi romaron, I'm still unclear on were the (US) selfish policies that created the situation.
I understand policy actions and reactions that have lead us to this position but unclear what US policy you were pointing to. Hence my question.
I'm a capitalist but recognise the value of socialist interventions to correct certain outcomes for the benefit of society generally.
I don't put OPEC actions into that category and certainly wouldn't describe their actions as 'heavy lifting' beyond their own self interest.
Oil is a high intensity energy commodity with multiple uses because it is plentiful, cheap to extract and easy to transport. The traditional market is conventional extraction following significant capital investment. KSA and other middle east producers have enjoyed the riches of their geological advantage for decades. Other producers such as the US (conventional) and North Sea have operated at the margin.
Today, high tech new comers (shale) are challenging the traditional producers who for years safeguarded their own investments through cartels (OPEC) but the structure can't cope with the flexibility and rapid reaction of investment in shale.
I dislike the environmental impact of shale practices but while Trump is in power those practices will continue, if not worsen. I don't know that Fed cheap money was targeted at the oil sector, and I don't think the US were alone in adopting QE policy. I don't think America is alone in adopting foreign policy in support of its self interest.
But I prefer a free market to cartels, price fixing and tariffs. I'm still hopeful that the severity of the demand destruction we're now seeing will result in something closer to a free market, and that Enquest is still around to benefit.
Putin: we are ready to take action with the US to cut production. (He mentioned a 10 million bpd cut)
#OOTT #opec
If shutting down GOM is Trump's way of cutting US production then so be it - now we need OPEC+ to announce their cuts - along with other oil producers as well - including Norway and even the UK by stopping production at uneconomic fields like Thistle - then the long road to recovery can begin.
Hi L7 - I think chilting answered for me. OPEC has to cut to boost the oil price whilst shalers sit there and take quick easy profits. The conventional producers need stability for the longer gestation period of new wells whilst the US shalers are the ultimate parasite. Fed cheap money due to QE and then to scrounge off the heavy lifting basically done by OPEC. I know it's a bit simplistic but the US also acts in its own interest by sanctioning Iran and Venezuela. I get wound up by the hypocrisy of the US. All the sanctimonious pontificating and obeisance toward Jesus and the "Military" especially by the orange one with bone spurs.
Here is WSJ article.
All according to people familiar with the matter.
Chevron and Exxon Mobil Corp., are adamantly opposed to oil-market interventions but some policy analysts have suggested shutting down production on federal lands or mandatory curtailment of oil production in Texas.
BP and Shell are down today.
https://www.wsj.com/articles/trump-administration-discussed-shutting-oil-production-in-gulf-of-mexico-11585923887
GOM is one of the lower cost producers in the US. Of course, Numpty needs Texas shalers to be alive and kicking (November elections), at the expense of the others.
STOCKHOLM (Direct News Agency) The Trump administration has discussed cutting down oil production in the Gulf of Mexico due to the spread of corona virus among workers.
It reports the Wall Street Journal citing sources.
It is unclear whether the proposal remains open for serious consideration. But if implemented, production would reduce 2 million barrels out of 13 million barrels in total, but would be controversial in the oil sector.
Donald Trump said on Thursday that he is trying to find a solution to the price war that has been between Russia and Saudi Arabia.
Trump consider close production Mexican Gulf
https://www.avanza.se/placera/telegram/2020/04/03/olja-trump-administrationen-overvager-stanga-gom-produktion.html
Londoner
Its a simple fact that cuts by OPEC+ have been the main thing that has supported the oil price over the last 3 years or so - they have cutting as the Americans increase production.
Any agreement now will I think be dependent of production cuts in the US - I know it will happen anyway but there needs to be some symbolic gesture by Trump to reinforce that stance - he has to be seen to do his bit.
10p party at my place tonight!
but no one wants to pay 10p
remember ….one sheet does plenty..
romaron, in the main, I agree with your comments, but what policies are you referring to when you say. "It is the US that tried to rule the oil world and why should they be shown mercy because their selfish policies created the situation."
One thing - its in no ones interests for the oil producing countries to do a bad deal - they all have to agree to meaningful cuts.
It would be better not to do a deal at all than to do a short term fudge - that would simply keep crude low for an even longer period.
I expect KSA and Russia to continue to play hardball. They can give the fragile impetuous Trump some headlines and play to his childlike ego whilst allowing the weakest oil companies to choose bankruptcy or a zombie existence. A cut of 10 mio barrels would finish off many as it is less than the overproduction. If they capitulate now it will have been in vain. It is the US that tried to rule the oil world and why should they be shown mercy because their selfish policies created the situation. You don't think MBS would be callous enough to use CV19 to speed up the demise of shale or Putin agree to help him? Kinda two culls for the price of one. The buying up of tankers by KSA was seriously smart.
approaching Brent $33.63. but WTi is still $27.11. WTI needs to be near $40 and rigs and frac crews would still need to be cut.. The US will demonstrate this as a cut.. but restricting US exports is the solution. Trump can sign that at the appropriate time imv.
Q1 hedges used to make decent Q1 profit. Our break even 38. Fast approaching. Hopefully break even Q2.