The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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From CNBC 51 min ago:
Saudi Arabia is shutting down half of its oil production after drones attacked the world’s largest oil processing facility in the kingdom, The Wall Street Journal reported. The closure will impact almost five million barrels of crude production a day, about 5% of the world’s daily oil production, the WSJ reported, citing sources familiar with the matter.
Early Saturday, an oilfield operated by Saudi Aramco, the state-owned oil giant, was attacked by a number of drones, which sparked a huge fire at a processor crucial to global energy supplies. Yemen’s Houthi rebels have claimed responsibility for the attack, saying it was one of their largest attacks ever inside the kingdom, the WSJ reported. “We promise the Saudi regime that our future operations will expand and be more painful as long as its aggression and siege continue,” a Houthi spokesman said. The attack involved 10 drones, the Houthis said.
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I very much doubt that Yemen has the capability and infrastructure, to manufacture, arm, provide the drones guidance system and software, as well as pilot and then finally navigate and launch missiles from 10 separate drones (Remember, each drone is an individual entity which requires it own navigator and pilot) in to Saudi and launch an apparently successful attack on the oil installation.
Very concerning times for the Gulf region given the current political situation.
Frits
Its a difficult moral situation for those on this board. Many here are fully, if not indeed overinvested, in the oil sector, so the prospect of inflated oil prices can only come as welcome. Yet our humanist nature has concerns about another major escalating conflict, even if that conflict is reassuringly in a far off territory. Its up to all of us to reconcile this.
It's a worrying precedent but in the context of this ongoing conflict escalation was the only probable outcome sadly.
Conflicting indeed on a personal level, as missed the opportunity to top slice last week and may be glad I did!
Johnpwh, the animosities in the ME go back centuries & every slight is remembered & handed with enhancements to the next generation. The only way this could be reconciled would be by nuking the whole continent & then starting with a clean sheet. Trouble & strife is part of the DNA, the situation is irreconcilable.
Beerbull. Bit like europe then?
Hmmm perhaps we shouldnt have been silently complicit in Saudis attacks on Yemen the past years and supplied the knowledge, hatdware etc to bomb Yemen half way back to the stone age. It's almost like you guys only get half the story in the news
Agree Beerbull. There is a history of infighting until the West decides to play at being World policemen, then they temporarily bury their differences and collectively round on them instead! Of course things were so much better when Blair appointed himself to keep the peace there.....
ps. I'm glad the AM is no longer in Dubai being spannered with all this unrest going on!
Vino time
Johnpwh, I think I’m correct in saying no one wants any bloodshed, however naive that sounds. But the real politic of this action will result in death & anybody holding equity in the oil sector will be the financial winners. Maybe I’m being cynical but money wins every time & sanctimonious two faced guff fools nobody.
John, my last post was not pointed at you, just a general comment. Enjoy your vino.
Thanks for the link Iamluvingit, interesting posts.
So the world will be short of oil, unless Iran is allowed to sell its oil - seems unlikely and the consequence of this esclation will hurt many markets on Monday imv . On balance bad news for uk imv.
Taverham
Putin has a smile on his face.
Undoubtedly a big spike in the oil price on Monday. However, KSA already said will use their stockpile to keep the market adequately supplied.
Suspect they will take advantage of the situation and whilst releasing stock oil will not release too much and keep the price up for a while.
Suspect Iran might have gone a bit too far this time mind.
Nice bonus on Monday if you’re into PMO.
GLA.
Hi Biffadog. Not particularly au fait with PMO - do you say that as its seen as a fairly pure play on PoO?
Beerbull, didn't think it was. Wine and homemade lasagne was just fine!
PMO are heavily indebted and the share price is hamstrung because of it. As a result they (and ENQ) are oil price sensitive.
Any refinery outages will be ‘relatively’ short lived and that in itself presents a trading opportunity if one is so inclined to exploit it.
As for HUR, there’s a decent chance at $80 per Barr of an additional $9m revenue on the next offload.
wellwell
You saw that, Biffadog saw that, I saw that and any trader with the least bit of nous will have seen that. PMO has to be good for a punt on Monday. Just get out before the rest.
Yeah. I’m feeling like a teacher.
Its bizarre but PMO v HUR any increase of production by PMO and subsequently price of oil increase massively reduces there debt .
As where HURs growing coffers seems to have little effect on share price.
Perhaps if this is the case then our lot should as I posted earlier today on advfn start utilising this surplus of cash and for my tenpenneth look into strathmore to book what seems to be safer / ie conventional reserves.
Reasonably confident that once the Transocean Leader is in situ spudding in will be rapid.
Trend ,drilling data from previous wells ( fractured basement reservoirs/ wells aren't the norm ) so every well will be a learning curve ergo quicker.
The cash will be used to pay for the warrants as and when they have enough to buy them back in one single transaction as per the clause
https://www.bbc.co.uk/news/business-48492872
Thinking about Ineos and the impact this may have on them. Can't imagine Mr Ratcliffe is too thrilled right now.
5.7m lost production
Could have been much worse.
So be interesting to see how the Australian market opens on Crude tomorrow (8-9pm GMT).
Jaykay, clearly beerbull is suffering from mental health issues, also he has no idea of British history and how the west has waged endless wars in the middle east in the name of terrorism. He has forgotten about the Christian crusades and forgotten about the colonial invaders and forgotten about how British weapons have massacred thousands of Yemenis. He has also forgotten Tony Blair illegal fabricated war on Iraq. He thinks that muslims are cause of all tje trouble in the middle east and the only way to resolve the problem is nuking it, every racist fascist persons view. He has no idea if this was to happen many people in Europe would die from over flow of radiation. Maybe beer bull wants to also resolve the Brexit issue with a nuk, maybe in the bedroom when he is unable to perform he wants to resort to nuking his own thingy.... beerbull you really need to get professional help for your comments. Uttsr Idiot ... he has forgotten about all the hideous war crimes invasions of the mighty British empire which is worth sh**t now.