George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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Volte-face by end of today?
First Squawk
@FirstSquawk
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2h
RUSSIAN OIL MINISTER: OIL MARKET SITUATION IS UNSTABLE DUE TO THE SPREAD OF CORONAVIRUS
First Squawk
@FirstSquawk
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54m
RUSSIA'S ENERGY MINISTRY HAS CALLED A MEETING WITH RUSSIAN OIL COMPANIES FOR WEDNESDAY || RUSSIAN ENERGY MINISTRY TO DISCUSS FUTURE COOPERATION WITH OPEC AT WEDNESDAY'S MEETING
worthwhile article:
https://seekingalpha.com/article/4330764-oil-saudi-price-war-scenarios
Thanks for putting the other side of the argument.
Lets hope one of them backs down soon.
I read a post this morning (on lse/advfn?) that there was an OPEC technical meeting for 18th March. - maybe that will sort it? (perhaps a production cut of 1m barrels without Russia?)
Five years of austerity and safeguarding assets against the threat of U.S. sanctions have left Russia in a stronger position than ever before to cope with lower oil prices. Putin’s plans to increase spending this year can go ahead regardless and a weaker ruble will only help the country’s commodity exporters, which sell their goods in dollars.
International sanctions forced Russia to strip back foreign borrowing in recent years, while stringent fiscal policies pared domestic spending to a minimum. The result is that Russia now boasts the fourth-biggest international reserves in the world, and some of the lowest debt levels. Putin’s new government still has plenty of room to start increasing spending this year even if oil prices drop closer toward $40 a barrel.
Compared to other oil-exporting nations, Russia is in very good shape to cope with lower prices. Saudi Arabia, for instance, balances its budget at oil prices roughly double the level that Russia can cope with.
Russia’s finance ministry said that the country’s oil-wealth reserves would be sufficient to cover lost revenue “for six to 10 years” at oil prices of $25 to $30 a barrel.
I expect Saudi may blink first on the back of US pressure
14.5p to buy in Canada.
Cash 33p. No debt. Gas production.
Madness
Interesting analysis and discussion on advfn PTAL:
from pro (thanks):
Only Saudi wins in oil.....they can bring on 2M bopd instantly.........Russia can only increase around 300K. So if Saudi undercut any Russian price and ramp up......Russia sells minimal oil, Russia collapses. Remember, Russia agreed to extending existing cuts to year end, but would not increase further saying they were happy with 45$. Now they are faced with 30$ and selling around 2M bopd less than before - thats massive on their budget - Rouble collapse scenario. All they have to do is agree to cut a bit more........nothing else - now they face chaos...... 3 weeks to go to make an agreement. I expect the Rouble to start a massive sell off now. Already now 73 Roubles to 1 Dollar and climbing - thats fast approaching a 5 year low for the Rouble.
https://www.ft.com/content/804d6c82-61aa-11ea-a6cd-df28cc3c6a68
Virus: Active cases 43913 (China 18942)
Likely to take a hit from oil price today?
latest figures: active cases 39391 (China 23731)
[2nd March: active cases 40863 (China32577)]
Note rapid decline in China.
Worth a flutter at these levels, problem is that it is very illiquid stock and a low volume is needed to move it either way.I thought it hit the bottom at 30 and now its trading at 20.05. It is not really popular among pis but fundamentals are really strong.
29mil in cash
646 boed equivalent a day
Cash flow positive at this rate
Receives premium on Natural Gas
Owns infrastructure sells direct to customer
High reserves
1000 miles from Syria border
Equinor exit (is these a cost due to Valeura)
Share price at an all time low
Directors purchasing
Results due on 12 March
Way undervalued added first trench.
A useful website for monitoring the virus:
https://www.worldometers.info/coronavirus/
Picked this up from the RRE board (thanks, NewKOTB) - made me smile:
Dow's previous worst weeks:
2008: Lehman Brothers -18.55%
1933: Great Depression -15.55%
2001: .com crash -14.26%
1940: UK about to be invaded by Nazi Germany -14.21%
1929: Wall Street crash - 13.52%
1987: Black Monday - 13.17%
This week DOW down almost 15% ..... !!! for the Flu
Article on FT today:
'Saudi Arabia is pushing to make a substantial cut in oil production when Opec and its allies meet next week.... The kingdom is asking producers including Russia to sign up to a collective production cut of an additional 1m barrels a day, according to five people familiar with the talks...'
Regards OPEC meeting, this is last paragraph from https://oilprice.com/Energy/Energy-General/Oil-Prices-In-Freefall-As-Pandemic-Fears-Grow.html
'...Oil prices are now more than 10 percent lower than the levels seen just last week, before fears of a global coronavirus outbreak started slamming riskier assets and equities and sent market participants heavily selling oil. The market largely ignored a relatively bullish EIA inventory report on Wednesday, and it continues to ignore a massive 1-million-bpd supply disruption from restive Libya.'
By Tsvetana Paraskova for Oilprice.com
With cash at 32p a share, no debt, Gas production of about $3m a quarter, 10tcf exploration potential, this (like LBE) is looking a safe haven from the current market turmoil.
Fingers crossed.
Full results March 12th. Hopefully work programme update then too (due Q12020).
Macro - OPEC meeting 5/6th March.