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That was in May the latest onSPR
The U.S. Administration could begin crude oil repurchases to fill the Strategic Petroleum Reserve as early as in June, after a Congressionally-mandated sale from the SPR is completed next month, U.S. Secretary of Energy Jennifer Granholm said on Thursday.
“That congressionally mandated sale of 26 million barrels will be completed by June, and it's at that point where we will flip the switch and then seek to purchase,” Granholm said during a hearing in the U.S. House of Representatives.
In October of last year, the administration announced that it would repurchase crude oil for the reserve when prices were at or below about $67-$72 per barrel. The move would be dual purpose in that not only would it replenish the nation’s depleted reserves, but it would boost demand when prices were low instead of sending them into orbit at a time of regular prices.
Early on Friday, the U.S. benchmark, WTI Crude, was trading at around $70 per barrel and on track for a fourth consecutive weekly loss.
After selling more than 200 million barrels of crude from the SPR last year, the U.S. Administration has left the strategic petroleum reserve at its lowest level since 1983, at 372 million barrels of crude.
Earlier this year, Secretary Granholm had suggested that the Administration would start repurchasing crude oil for filling the SPR in the autumn of this year, and that the refilling could take years.
The Administration has previously said that repurchases could begin in the fourth quarter of this year, after maintenance is completed on two sites storing the nation’s crude oil reserves in Texas and Louisiana.
Thursday’s comments from Secretary Granholm “reflect an intense messaging campaign likely intended to mollify Republicans angry about the big SPR draws,” Bob McNally, an energy policy analyst at Rapidan Energy, told Reuters.
Thanks for reply, meoryou.
They need to do something to bolster the SP.
Continued buybacks are doing nothing.
Substantial re-instatement of divi, would excite the price.
I'd counter your point - it isn't an admission. bp guide a capital expenditure range per annum, if they were to go too much above this then they open themselves up for poor planning or overspending critique which would have a detrimental impact on SP.
Does anybody know whether the Americans still have the SPR Taps On.
What we could have is a battle of wills with the Democrats trying to get oil prices down, while the Saudi's are cutting output in an attempt to raise prices. The SPR WILL have to be replenished at some point, probably towards the year end.
We’re now 10p down since the OPEC meeting. I’d have expected it to be 10p UP at least.
I think there is a place for buybacks but I acknowledge that they are, in a sense, an admission by the BoD that they cannot think of a productive way of using the cash WITHIN the business. Progressively we, as shareholders, own a bigger proportion of a smaller company. But debt reduction and payment of dividend also reduce the capital available for investment. I don’t think there are hard and fast rules as to what’s best at any particular time.
Tinker
The plan was that the div pot would stay the same and decrease in share count would mean an almost automatic rise in div per share of 4%.
So div would stay very affordable
The 10% rise was as a result of better than expected profits and included the 4% due to buybacks
Buybacks achieve nothing in my experience. Better to use the company’s accumulated capital to diversify, improve operating hardware, buy
-in new technology, buy-up competitors……. whatever !
New shares are inevitably issued to service directors’ next round of bonuses and awards.
Net effect - zilch.
Couple of years ago, (having slashed the divi) BP said they would raise the divi by a small..ish % each year (4/5%).
Was that:
i). A % uplift in each share dividend. or,
ii). A % uplift in total cost of dividend?
If ii). then presumably we could see a much larger per share increase, due to the continued buy-backs.
Any thoughts, out there?
How long will this pessimism hang over the markets. Does y11-shx have a point. I don't think the SP will drop past ÂŁ4 the current dividend would support it and present a massive bargain.
Looney could certainly buoy the SP with a reinstated pre Covid dividend of 10.5 cents qtr. That would help rocket the SP past ÂŁ5.
When are the buybacks finished?
Maybe then the price will lift.
Positive
https://www.livecharts.co.uk/MarketCharts/brent.php
Oops oils just gone negative whens the next opec meeting??
I don’t think we have to wait till next year tomorrow will most likely do.
That is my new belief now. World is short oil and there will be a short squeeze over the next few months with prices rising.
I just don't see how the world needed 2mmbpd more oil last year than it needs this year, especially with the SPR draw-downs. It's more likely the storage draws will accelerate over the next few months to the point where the markets notice.
High oil prices are a nice leader into recessions. Perhaps the recession will now be early next year after oil peaking at $120
Y11, July 22, Brent $118, share price ÂŁ3.60. Feb 23, Brent $82, share price ÂŁ5.70. Is it possible for you to write a non dumb post.
Yes your right but the problem you have is if oil price goes up so do interest and the the whole economy crashes and drags everything down with it. It a bad situation but the best thing all round is $60 oil.
Yes Y11,
If buy backs stop and oil price falls, we could see £3 again. Equally, with higher oil price and continuing buy backs, we could see £6, £7 or higher. It’s really not that hard.
Tinker
I glad you admit you don’t understand it’s been apparent for a long time. All time high £5 is because of the buy backs and high oil prices. When they stop and the oil price drops the we may see £3 again. It’s really not that hard.
I really don’t understand why the market is letting them do it so cheaply.
If Shell had bought 21% of us I think sp would be miles higher.
I know it’s not the same as we have spent our money to buy the shares,while if another party bought we would still have that cash.
Imagine a time in when BP has bought back 50% of shares and you then all own twice as much of the company.
Value always show in the end
And another day of losses
BP purchasing shares to the tune of 21% of its mcap is a staggeringly amount!!!
At some point the dial is going to move.