Sapan Gai, CCO at Sovereign Metals, discusses their superior graphite test results. Watch the video here.
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Hope Saudi Arabia and Russia can find a solution, because believe that is required by the circumstances and would be in the best interests of both.
But, without the US, the cuts will be less and, therefore, the impact on the oil price, less.
Bunks maybe to do with this
https://www.cnbc.com/2020/04/06/russia-saudi-arabia-are-very-close-to-an-oil-production-deal-rdif.html
Blimey o.p much much better and futures looking very good
O.p only down 10%....
Futures up for now....
Could all change by the morning of course - GLA
Saudi Arabia, Russia and other large oil producers are racing to negotiate a deal to stem the historic price crash as diplomats said some progress was made on Sunday.
The talks still face significant obstacles: a meeting of producers from OPEC+ and beyond -- delayed once -- is only tentatively scheduled for Thursday. Russia and Saudi Arabia want the U.S. to join in, but U.S. President Donald Trump has so far shown little willingness to do so.
Oil diplomats are trying to stitch together a meeting of G20 energy ministers for Friday, as part of the effort to bring the U.S. on board, according to two people familiar with the situation...
https://www.bloomberg.com/news/articles/2020-04-05/oil-negotiators-race-for-deal-to-stem-rout-as-leaders-snipe?srnd=premium-europe&sref=Em01M8Hr
“....particularly if U.S. oil producers will not join with voluntary cuts.”
The US argues that it cannot control oil production in the land of the free. But, in reality, the mechanisms do exist but shale producers have been granted waivers from environmental regulations which enables their reckless behaviour:
‘ the Federal government does not control oil and gas production in Texas, the people of Texas do through the State Constitution and by reliance on the Railroad Commission of Texas to uphold laws that prevent resource waste and promote resource conservation.’
(Quote from https://www.oilystuffblog.com/single-post/2020/03/27/Hold-My-Beer-I-Can-Fix-This )
Those US producers appear to be stronger than their regulator or, perhaps, they have the regulator in their pocket. At best, it seems from the article, the RCT appears to have been complicit in allowing the plundering and poor management of a valuable national resource.
...Saudi Aramco will delay the release of its crude official selling prices (OSP) for May until April 10 to wait for the outcome of a meeting between OPEC and its allies regarding possible output cuts, the Saudi source said.
“As Aramco seems to have postponed the release of their official selling prices for May, it seems the kingdom still believes an oil production cut deal is possible,” said UBS commodities analyst Giovanni Staunovo.
“The biggest challenge remains how to split up those cuts among producers, particularly if U.S. oil producers will not join with voluntary cuts.”
https://uk.reuters.com/article/uk-global-oil-prices/oil-prices-set-to-open-lower-due-to-saudi-russia-row-idUKKBN21N0HK
Hawks and Doves: One thing for sure is that the real strategies and intentions of the main players is carefully concealed.
Of the three dominant countries involved, the US is probably the most relaxed about low OP because the majority of US citizens and the economy is accustomed to, and thrives upon, relatively cheap fuel. However, if the price is too low the home industry gets damaged. The US and Russian leaders would apparently be content with $40 -$50 Brent but this does not satisfy KSA's national needs. In fact $40-$50 is possibly worst case for them - too little market share at that price, even though the margin is higher. So, as the lowest cost producer their solution is to undercut the others and maximise their market share. If you can sell 20% more oil by discounting by 10% (for example) it's a no brainer...
Saudi Arabia, Russia and other large oil producers are negotiating for a deal to stem the historic price rout, even as leaders trade barbs in public.
“President Putin and the Russian side in general are keen to engage in constructive negotiations, which is the only way to stabilize the international energy market,” Kremlin spokesman Dmitry Peskov said in a pre-recorded interview aired on state TV on Sunday...
https://www.bloomberg.com/news/articles/2020-04-05/oil-negotiators-race-for-deal-to-stem-rout-as-leaders-snipe?srnd=premium-europe&sref=Em01M8Hr
It is possible that Donald will have more pressing issues than the oil price to sort out in the next few weeks. Politicians are actually playing their complete legacy with this pandemic.
The American cultural model is bound to take a hit as their health system is not designed to absorb that type of sanitary crisis.
Their social system will be under considerable strain with the sharp rise in unemployment ...
Difficult to see when the oil market will be on the path to recovery. IMV it will take another 3 months to have some visibility ... when the bulk of the health crisis is behind us, then serious thoughts will be directed at "what next for the economy, oil prices etc ..."
Only my view ...
GLA
Stay safe.
So ‘Oil set to plunge Monday as key OPEC meeting delayed amid rising tensions’ according to Seeking Alpha.
A bit melodramatic under the circumstances as we all knew that $34+ was potentially a bubble based on anticipation of the much vaunted OPEC+ meeting, which has apparently been postponed rather than cancelled. $2 of the rise occurred after the LSE closed. So by ‘plunge’ we are presumably talking about a drop-back to what point exactly? $27 or $22 ? Both of which have been seen recently and neither would therefore be a shock. $27 would be proportionate - not that the market is always rational.
Although G, DNO and GKP seemed almost oblivious, RDS was already dropping back on Friday. The euphoria sparked by Trump’s grandstanding about sorting out OP was a precarious basis for buying heavily into oil stocks at recent highs - especially when much can change over a weekend.
Friday - before, during and since - on a 5 min chart: https://invst.ly/qcirc
Three OPEC sources, who asked not be identified, said the emergency virtual meeting planned for Monday would likely be postponed until April 8 or 9 to allow more time for negotiations.
Sources later downplayed the Saudi-Russia row, saying the atmosphere was still positive, although there is no draft deal yet or agreement on details such as a reference level from which to make the supply cuts.
... “The first problem is that we have to cut from the current production level now, not to go back to the one before the crisis,” one of the OPEC sources said.
“The second issue is the Americans, they have to play a part.” ...
https://uk.reuters.com/article/us-oil-opec-saudi-russia/opec-meeting-delayed-as-saudi-arabia-and-russia-row-over-price-collapse-idUKKBN21M0FY
... This time round everyone is sharing the pain. About 7 million barrels of daily output due to be shipped next month by a range of exporters is “homeless,” with “literally nowhere to go,” consultant JBC Energy GmbH estimates...
https://www.bloomberg.com/news/articles/2020-04-03/oil-s-stunning-demand-collapse-threatens-closures-everywhere?sref=Em01M8Hr
OPEC+ meeting to be delayed ...
https://www.bloomberg.com/news/articles/2020-04-04/saudi-arabia-says-putin-s-comments-on-opec-deal-is-incorrect?srnd=premium-europe&sref=Em01M8Hr