Member Info for EmeraldCarrots

virus might kill them should stay at home and be barred from going out until they have been vaccinated.
All others return to work asap, before the economy is destroyed.
I'm pretty sure everyone will be extremely careful when they do return to work all things considered.
All IMHO.

Luckily PMO have 37% hedged @ $64 until July.
So for 100 barrels.
37 @ $64 = $2,368
63 @ $28 = $1,764
Total: $4,132. / 100 = $41.32 per barrel.
OK, for now!

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asked to do something about it as the last effort clearly did not work.
Many USA shale oil and frankly loads of other oil companies all over the World cannot survie a prelonged $22 WTI oil price.
Maybe Mr Trump has a backup plan. Likely I think.
All IMHO.

Maverick7.
I think with WTI @ $22 AFTER the 10m barrel cut announcement (ok not implemented until May) is a disaster.
Co's that sell WTI grade oil are going to be going under at a massive rate if this price does not improve.
All IMHO.

WTI:-
http://www.livecharts.co.uk/MarketCharts/crude.php
Brent:-
http://www.livecharts.co.uk/MarketCharts/brent.php

ain't going to like this at all as the shale oil Co's need WTI @ minimum $40 as far as I am aware. If your oil is WTI grade then it's brown trousers time if this continues! I have a feeling if the price does not improve in the next few days Trump is going to be phoning Saudi and Putin again to get something done that actually raises the price of WTI over $35. A price of $22 is horrifying to just about any producer of WTI oil. I mean almost all suppliers will be losing money at that level. It's crazy.
This is going to stay major news until something is sorted.
All IMHO.

JS88.
"Just been reading the latest RNS from a few weeks back.
"Premier has hedged c. 30 per cent of its full year 2020 oil and gas entitlement production at an average oil equivalent price of $60/bbl. This includes 40 per cent of the Group’s oil production for the first half of the year hedged at $64/bbl." Whats this actually mean, do PMO require a price of $60/bbl?"
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Hedging is when you do a deal whereby a hedging Company guarantees a certain price for your oil or gas.
For example as far as oil goes PMO have already stated they have hedged 37% of all their expected oil production at $64 dollars a barrel until July 2020. This means that, for 37% of all their oil production they will, at minimum get $64 no matter if the actual oil price falls below that level. Therefore at the moment with Brent crude @ $30 ish they will get re-imbursed the missing $34 dollars ($30 + $34 = $64) a barrel by the hedging Company/s for 37% of their production. PMO will be claiming the $34 per barrel back from the hedging Company. I might add that they will be having a torrid time as this virus has obviouly produced an unprecedented situation.
Why do hedging Co's do this? IF the oil price had gone the other way and at the moment was say $74 a barrel PMO would only get the $64 for the 37% of production ......... the hedging Company/s would make $10 ($64 +$10 = $74). So if the oil price was $74 and PMO produced 100 barrels of oil PMO would only get $64 for 37 barrels, and the other 63 (100-37=63) barrels at full price, $74.
All IMHO.

https://uk.reuters.com/article/uk-global-oil-saudi/saudi-energy-minister-says-effective-global-oil-cuts-above-19-million-bpd-idUKKCN21V1EC

Don't forget 37% of PMO's entire oil production is hedged @ $64 (hedge funds that took that bet being hammerd I presume).
It is hedged until July, so it's looking increasingly like the actual oil price by then will be easily North of $35.
All IMHO.

It's looking like Brent is going to trade between $29 and...... I would guess $35 for the time being. The cuts unfortunately don't really start until May. Having said that with Countries coming out of lock down to an extent (including China, the biggest oil importer), and the production cut looming the future, at the moment at least seems moe rosey. This should IMHO bring back confidence to the oil Companies futures. Less competitive Companies will be folding as well removing production from the market. I suspect PMO's sp will either stay the same or improve as things stand.
All IMHO.

we are going tomorrow, probably!

https://www.bloomberg.com/news/articles/2020-04-12/saudis-delay-crude-pricing-decision-as-output-cut-talks-drag-on

https://uk.reuters.com/article/uk-health-coronavirus-johnson/british-pm-johnson-discharged-from-hospital-statement-idUKKCN21U0HC?il=0

Something needs to happen TODAY.
I think it's more likely than not that Trump's people are working in the back ground here.
We need the Mexico issue resolved. Maybe if they cut 200K barrels. have to say though why not chuck them out of OPEC if they are being unreasonable. If the deal ends up off directly due the Mexico they wil have a lot of Countries in the World blaming them and they are a poor country to start with.
Other option is if OPEC agree the 100K that Mexico offered.
Will need to keep an eye on this!
All IMHO.

KenniGT.
I care what Mexico says as OPEC say the deal IS CONDITIONAL upon Mexici cutting the 400K barrels and they say NO.
That means the deal is off and the oil price is goig to plummet?

https://uk.reuters.com/article/uk-global-oil-opec/saudi-russia-agree-record-oil-cut-under-u-s-pressure-as-demand-crashes-idUKKCN21R003?il=0

Cut not enough? On it's own no IMHO. However in time it may be. The cut has not, and IMHO will not make the oil price go up to the $45 levels that most producers can stay solvent at. So there will be a whole load of Companies going under in the next several weeks. I'm sure there are loads of oil Companies in the World that are on the edge and now the oil price has not risen after the announced cut they will throw in the towel, or their lenders will for them. The result will be of course less oil in the market and given time some sort of balance will happen. Unfortunately none of the big players will be happy at all. Russia needs $40 oil and Saudi over $75! I think over the next 6 weeks we will be lucky to see Brent touch $40 frankly, and so WTI around $35. I wonder if OPEC plus will have a re-think now we can see the 10m cut has had NO EFFECT!. The cut after all is at the lower end of expectations (rumoured 10 to 15m barrels a day).
All IMHO.

all the companies going broke around the World plus the missing Libya, Iran and Venezuela oil will be enough.
My gut feeling is we will be $25 to $35 range for a while yet. 37% of PMO's oil production is hedged @ $64 a barrel until July. PMO will need the oil price to be above $35 from the beginning of July. PMO may well be ok IMHO.
All IMHO.