Firering Strategic Minerals: From explorer to producer. Watch the video here.
Mate, you so have no idea how hedging works, it's not even worth getting started.
FWIW I was head of jet fuel trading for TOTAL SA for 10 years.
1. Wrong
2. Depends on the through put of the refinery
3. possibly, depends when the contract expires
4. No I don't.
Dude, chill out, you're overthinking this.
Pad, pal, I have no position and no axe to grind.
I said 'may' not 'are'. You might want to check the definitions of those in a dictionary.
There have been MANY cases in the oil business in the last two months of companies using COVID as an excuse for force majeure. Some stick, some don't.
So is it possible that some of Tullow's clients have done the same? Yes. Is it a certainty? No.
Try to be less sensitive.
Some of Tullow's clients may be declaring force majeure due to COVID.
So Tullow has to sell it's oil on the spot market like everybody else.
And that is brutal.
Because their hedge will be mostly pure WTI or Brent. What the hedge does not cover is the discount to those markers TLW will be obliged to give just to get the oil off it's hands.
Trust me, there is VERY little storage left. It's all very well saying theres x bbls still free, but where? Maybe you have a tank 2/3 full. Are you counting the 1/3? Because are you gonna put Brent on top of a heavy Saudi crude? Unlikely. Or maybe the tank is in inland Germany. Small ones, and very expensive to reach.
The next few weeks will see crude under much pressure in the prompt, futures may survive better.
All gone a bit quiet here...?
SP holding up reasonably well considering. Think some pretty nasty data will trickle in from the aviation sector; Heathrow figures today shows how quiet it is.
Although some European lockdowns are looking tentatively into being lifted, this will be a very slow process that will last well into the summer. And flights will be the last thing to be restored.
Personally I think it's a sell at 10 and a buy at 8, but what do I know?!
OPEC have struggled in the past to adhere to cuts of less then 5 mbpd.
How they intend to achieve 20, when states are desperate for cash is anyone's guess.
"Countries don't buy oil, companies do...."
Lol .....really !!
I was replying to PAD004
Btb, I just came from shops in my car. The parking lot was reasonably full.
That's why lockdown will go on much longer in the UK than in Spain.
Countries don't buy oil, companies do.
So that tells you that Europe has at least another 2 months of lockdown.
BUT, China's lockdown was a proper one, not the fuzzy warm one in the UK. So the UK could be many times longer.
Mole ma - yes. That is key.
The game now will be to sell as many cargoes as possible before the cuts kick in. And that will overwhelm the system.
There is VERY little storage left out there, and if you can find some, it is super expensive.
There will be distressed cargoes that literally have no home. At that point what price will they go for?
Absolutely ZERO chance of that happening.
If it hits high 30's it's the biggest selling opportunity in history.
REMINDER : No one is flying or driving.......
Kenni, they've been coming down for some time, and not just in Spain.
But what we are seeing now is that countries have no idea how to come out - too soon and they are heavily criticized for taking unnecessary risks, too slow and the economy is trashed.
The virus will be with us for all of 2020 at least. We need to learm how to live with it and that will not be easy.
Over 70% of the population are still stuck at home.
And there is strong opposition to this slight lifting of lockdown. If deaths/contagions increase, they will go full lockdown again.
Yes I live in Spain, and yes some non-public businesses can open, but lockdown is still very much TOTAL, unlike in the UK or USA, and will continue like that until well into June.
If you like I can post a photo of totally deserted streets. The Spanish don't even WANT to go out, they are so scared of COVID.
THe 2020 tourist season has been destroyed.
No, not June 2021. But tourism will not happen in any significant way until 2021.
I live in Spain, and the streets are deserted.
Lockdown will be until well into June.
The cuts were already priced in. Don't forget Brent rose from 26 to 34$.
Hoping for more rises now is wishful thinking I'm afraid.