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Good report, makes a lot of sense.
As long as a small E&P company has sufficient cash and limited debt, then they should be good.
Bear in mind that the API stats do not count the ULCCs full of oil offshore.
The reason the crude build has 'slowed' is because there simply aren't any more tanks to put the stuff in.
It can go to -40 $/bbl as we saw.
Oil is super volatile right now, there will be big swings up and down throughout May.
Even if further cuts are announced for May/June, it still won't resolve the problems in May because most of the cargoes are programmed to load whatever.
Yes oil will recover afterwards, but it will be very turbulent for a while yet.
It's going to be weird to cycle through there now with it all empty like a ghost town.
Magaluf IS tourism, there is nothing else there.
Some really big hotels that may just have a few Spanish tourists....
Normally Sunday morning the streets are full of fat drunk women and sick.
Basically, if you're prepared to come to Magaluf but spend the whole 14 days inside in quarantine, you can come. LOL.
From a supposed 'deramper', I really don't think so.
What do you mean by 'settled in cash'. There's no rule to say the money has to flow one way or another....
Well, I haven't solved my access problems yet, but probably not, still a bit hesitant to see how this May storage issue plays out.
As I said, I think the market is getting used to it, but another negative expiry wouldn't be good for oil SPs generally, whatever.
F*&k me I'm getting good at this...LOL
The storage issue is a big problem that isn't going away immediately.
Personally, I don't think so.
The market is getting used to seeing super low prices on the front, and everybody knows that is only temporary.
So yes the next few weeks will be a bloodbath for May and June futures again, but June / July, it should have cleared up.
Saudi crude is relatively poor quality - sour and heavy, but they do have several different grades.
In a ny case, it is worse than Brent and so would always be sold at a discount to that marker.
But are these FOB prices or CIF?
I.e. the buyer loads it or gets it delivered? Because the problem is that freight is super expensive at the moment, so anyone selling FOB has to offer a big discount.
Just for the avoidance of any doubt, here is what I posted early on 22nd April morning;
------------------
Probably worth a punt..22 Apr 2020 09:18
....at these levels. However, as I am not UK resident, I cannot buy the shares in the normal way, unless I go down the CFD route, but the spreads there are horrible, almost 2 pence, so not doing that.
So played it safe and have gone long BP instead, will sleep better!
Overall I think oil will improve this summer as cuts take effect and economies SLOWLY wake up, albeit with a risk of 2nd wave.
So good luck to those here, I admire your bravery, this one is not for the faint hearted!
------------
Oil and oil companies looked a bit oversold, so I jumped in. Saw a decent gain in BP and sold the next day.
Had it been TLW I had bought, I can assure you that if I had seen +65% on Thursday morning, my finger would have hit that sell button faster than greased lightening.
I will look into ways to trade TLW effectively from abroad, which is why I retain an interest in this stock and oil generally.
And least be humble enough to admit when you're been proven wrong.
So according to you guys, if the oil price goes down TLW goes up because that shuts wells in.
If the oil price goes up, TLW rides a wave upwards.
It's a win win!
(hey, maybe it is, what do I know?!)
Hmmm, an oil exploration and production company who's share price is completely disconnected from the oil price. Need to think about that one.....
Whilst it's true that the gyrations of the prompt shouldn't be too important, prices for Q3/Q4 and 2021 ARE important.
Perhaps even more relevant for TULLOW is 2022 and 2023 prices. These are about 40 ad 43$ respectively.
So childish.
Bit like a playground where the big boys gang up on the one that doesn't agree with them.
That would be 'come', not comes.
Daily moves up and down of up to 15% are not what I would call 'range bound'.
Go back and read my posts saying I would have bought at 16p on Tuesday morning. Couldn't so bought BP instead.
They rose 8%, I sold out at +7%.
I can cut and paste the post if you can't find it.