Member Info for BlooBird

Berenberg seem to think PMO will do OK.
"Premier Oil: Berenberg downgrades to hold with a target price of 130p."

Pedrob999
One quote is future
https://www.telegraph.co.uk/markets-hub/commodity/C1/BrentNextMonth

The other is Spot price
https://www.telegraph.co.uk/markets-hub/commodity/C7/BrentSpot

MaryMullins
Sorry … you seem to be right.
But I was going from the following chart on investing.com which specifically states rollover has already occurred.

https://www.investing.com/commodities/crude-oil

MaryMullins
The WTI futures contract has already rolled over to the June contract late Sunday night.

LONGWAIT
That link doesn't seem to work.
But I'm not surprised that Oil Co.s are tempted to take up Trump's offer as WTI spot is only $11 at the moment.

https://www.telegraph.co.uk/markets-hub/commodity/C8/WTISpot

NOTAFUNNYBONE
Since the PoO below $28 in 2016, the highest Oil has ever been is $85 in Oct 2018.

The RNS states :-
"These production rates have been achieved without the use of electrical submersible pumps (ESPs) and with the wells choked back to less than 50%, confirming the extraordinary productivity of these wells and the reservoir."

If the wells were only chocked back to 75% flow (sometime in the future) does that mean they could produce 30k bopd and therefore not need to drill and tie back another well ?

JiffyBag
You wrote "can see the Oil price staying in the $30's until at least late June"

I think we'll be lucky to see PoO staying in the £30's until at least late Thursday.

maqsood7
I don't think PoO is going to be $34 for very long.
Unfortunately, I think it's going to drop like a stone when people realise that Trump's 10 million bpd drop is wishful thinking.

Very well written article explaining current Oil situation.

https://www.investing.com/news/commodities-news/commodities-week-ahead-trump--the-oil-market--part-1-2131546

adoubleuk
Thanks for explanation.
But what about ?
"For some oil fields, shutting down could cause permanent damage to reservoirs. "

I don't understand why (maybe someone with more knowledge can explain) but according to Wood Mackenzie shutting down has its own costs, and could make restarting more difficult and expensive. For some oil fields, shutting down could cause permanent damage to reservoirs.
That's why some companies prefer to carry on taking a loss than to shutdown.

Mr.Spacetomato
Russia need 25% of current production for their own use.
So a 50% cut in production would mean 2/3 cut in exports … they would need Oil to be at $60 not $40 to keep same income.

I find it unbelievable that people think that Russia and Saudi Arabia actually agreed to cut almost 50% of their Oil production …. just unbelievable !!

What's even more surprising is , even if Russia DID say they would make such a huge cut, that they would actually go and do it.

People seem to think that there will be vaccine out soon for Covid-19 and as in ww1 " It will all be over by Christmas " but the following is a sobering comment by a researcher.

"More than 30 years and 30 million deaths later, there’s still no approved HIV vaccine -- a cautionary tale for anyone expecting a coronavirus vaccine within the next year, according to Kinch, a former drug developer who’s now associate vice chancellor at Washington University in St. Louis."

It's been obvious for several years now that the World is getting overcrowded.
But if some religious people think that this Virus is God's way to solve the problem, it is going to badly backfire.

a) Because millions of very bored people are going to be cooped up together for weeks on end.
b) One of the biggest Condom manufacturers in the world has just been closed down because of Corona Virus at the factory !

Adoubleuk
"I refuse to believe that China deliberately unleashed this thing on the world"

I agree but it has happened when a virus was leaked from a lab accidently.
The last line of the report is the scary bit

" The hybrid virus was able to infect human cells."

It seems more than coincidence that a major virology lab is In Wuhan.
WIKIPEDIA states the following:-

In 2005, a group including researchers from the Wuhan Institute of Virology published research into the origin of the SARS coronavirus, finding that China's horseshoe bats are natural reservoirs of SARS-like coronaviruses.[6] Continuing this work over a period of years, researchers from the Institute sampled thousands of horseshoe bats in locations across China, isolating over 300 bat coronavirus sequences.[7]
In 2015, the Institute published successful research on whether a bat coronavirus could be made to infect HeLa. A team from the Institute engineered a hybrid virus, combining a bat coronavirus with a SARS virus that had been adapted to grow in mice and mimic human disease. The hybrid virus was able to infect human cells.

Looks like US Oil frackers are starting to hurt ... no wonder Trump is worried.
Area Total Month Year
U.S. ,,,,,,,,...……. 728 ……. -44 ,,,,,, -278
Canada ………..,, 54 ……..-44 ........ -34
International . 1,085 .......... +7,,,,,,,,, +58

LONGWAIT Thanks for the sarcasm … my first smile of the day.