So what you are saying is the share price is valued correctly at this moment. And that you are waiting on further news.
Share prices are are dependent on profits and dividends, if companies are not well run we all know what happens. Large companies can have economies of scale, but can be like dinosaurs, slow to adapt.
I can’t see the worlds oil consumption being less than at the peak of the worlds lockdown. Even if there is a second wave, as each country will now relockdown and restrict travel on a more individual basis. As I see it, once the production is in balance with demand, which will be very shortly achieved, the price of oil should stabilise at the break even point of the major suppliers. From this point the price will rise slowly over the next few years until the aviation sector returns to a more normal level. The sp will then depend on how shell adapts to maximise its profits.
Hi Ken, hope you don’t mind me asking, most times you list the price of copper by the ton. Is that U.S. tons or imperial tons, as two of the apps I have downloaded today list the price in pounds and trading economics list it by the ton. All I assume are priced in dollars,
All the best
Almostdone
I thought oil was being sold below production costs just now.
There seems to be a lot of talk about the app from the nhs to warn people if they have come into close contact with people who could have contracted the virus at some point in the previous 7 days. As far as I’m aware it will be phones with Bluetooth enabled that will inform anybody within range. As far as I know there are three classes of Bluetooth, class 1, 2 and 3, from my knowledge most phones have a class 2, which means that most phones can connect to each other upto 10 metres distance, not the social distance recommendation of 2 metres. Therefore as I see it there could be a lot of false positives, resulting in possibility a lot of people being locked in for 14 days just because they could have been within 10 metres. If any of you guys know any different, all thoughts and info are welcome.
Hi Gkerr, I have been informed from a person who works in a refinery that branded filling stations get additives put inter their fuels. Whereas supermarket filling stations may not, hence you normally see at BP and Shell that their fuels clean your engine and apparently gives more mpg. There is also the bio content of fuels that are added that makes the fuel cheaper.
Consumption of oil will increase shortly, but I don’t see a drastic increase in the price of oil until the storage facilities are at their normal levels. This may take some time as most oil producers will want to maximise their production. There could be other reasons that will push the price up and that could be the cost of storage, the costs involved shutting wells down and the greater cost when they wish to reopen them.
The WHO strongly suggested yesterday that people recovered from Covid-19 could be reinfected and that it could be more severe than their initial infection. If a vaccine mimics an infection, would that not mean vaccinated people being at a higher risk if reinfected?
Trump saying he is going to open up USA very soon, which means travel and transport = oil consumption. Italy and Spain starting to allow industry back to work, the surplus oil will soon start to be consumed.
In times like this, expect the the improbable. Tuesday morning, if you hold a position and cash then you should be on a winner whichever way it goes.
When you have governments paying wages, and virtually price fixing the cost of oil on an upward motion, and there is still consumption of oil, what is there not to like even at the current price? I think we can all assume this will be well over £4 before the end of year (6/7 months), not a bad return.
Thanks.
Is BP still paying a dividend? I haven’t seen any notification if they aren’t.
In a few weeks it won’t matter what the Saudi’s or Russians are selling a barrel for, wether it’s $10 or $50. The storage facilities will be full, with very little consumption there will be no need to purchase further supplies. I’m now waiting for the usual fall today before buying back in, sold half my holding midday.
The last week or so there has been a rise and then a drop about 4:20 / 4:35, sometimes it goes up and stays though.
Either a lot of pi’s thinking and doing the same or some big boys playing the market.
Just coincidence or was there some news.
BP and RDSB both dropped at 15:55 today?
Since you have posted non stop lately the share price has been going down. Is this not telling us something! Your like the news telling us at every moment about the virus, lth have heard all this type of talk before.
Just thinking , would it not be better to just isolate and lockdown the elderly and vulnerable people. As they are the ones most at risk, the vast majority of people under 60 it is not serious to their health. This would allow countries to carry on, albeit at a reduced capacity until the working population has caught the virus and then gained immunity.