The non-astringent persimmon can be eaten at any time, but the astringent type needs to be ripe (really ripe) before eating. If eaten unripe, the person eating it feels like they are eating bitter chalk! ... Well, these beauties ripened into a darker golden orange and became quite mushy to the touch.
“ Donald Trump has urged Russia and Saudia Arabia to hold talks as demands grow for them to end a price war which has sent oil prices crashing. The US President said he had called Vladimir Putin and Crown Prince Mohammed Bin Salman to encourage them to find a solution to the crisis threatening the industry, after the value of crude fell by more than half last month.” Telegraph.
Our base case is for the price war to end in the not too distant future given the political pressure that is building on Saudi Arabia and the poor optics of destabilizing markets during a period of global pandemic.” Rabobank Oil Strategist.
China’s so called teapot refiners- non state owned refiners take advantage of the current oil price.
SINGAPORE (Bloomberg) - A sudden oil buying spree by China’s independent refiners has taken Asian traders by surprise.
After weeks of production cuts, cargo deferrals and cancellations because of the deepening impact of coronavirus on Chinese crude demand, companies including Shandong Shouguang Luqing Petrochemical Co., Shandong Huifeng Petroleum Chemical Co. and Sinochem Hongrun Petrochemical Co. have returned to the market in a big way.
They’re all non-state-owned refiners, known as teapots, from the eastern province of Shandong. Until recently, this corner of the industry appeared to be doing everything to avoid buying crude including cutting processing rates.
But then Luqing snapped up as many as seven cargoes from Russia, Angola and Gabon for March and April, while Sinochem Hongrun bought a shipment from Gabon and Huifeng was also looking for spot cargoes, according to traders with knowledge of the market.
The spree is probably a sign that the refiners known as teapots are getting ready for an eventual rebound in demand, taking advantage of the slump in crude prices to buy cheaply, according to the people. The timing of a recovery in China’s oil demand, which by some estimates has been reduced by 20% because of the virus, is the subject of great speculation in the market because getting it right could be very profitable.
Luqing bought ESPO, Gindungo and Oguendjo grades in the spot market this week, said the traders who asked not to be identified as the information isn’t public. Hongrun purchased Mandji at about a $1-a-barrel discount to Brent on a delivered basis, while prompt supplies of other crudes such as Lula and Johan Sverdrup were also being offered and may have traded. International trading companies were among the sellers.
Nobody answered telephone calls or responded to emails sent to Luqing and Huifeng, while Hongrun declined to comment when contacted by phone.
Spot premiums for crude delivered to Shandong plunged by more than 50% against the global benchmark Brent since the market began taking notice of the outbreak in mid-January, according to industry consultant IHS Markit Ltd.
The traders were cautious on whether the teapot purchases signaled a recovery in Chinese crude demand as many of the nation’s refineries are still running at reduced operating rates, and travel curbs keep consumption of transport fuels low. Some teapots are also laden with debt, weighing on their credit-worthiness and hindering operations.
S&S have probably burned their bridges with M&G which hopefully focuses their energy to make this work.
Posters have complained that they are not concerned with PI’s which are merely collateral damage. I disagree, they have clearly set out their MO ( application and judgment from Chancery) either special dividend or share buy backs or both.
PI’s should be thankful that alternative II’s have absorbed the departed which has prevented a meltdown.
They are fully funded for 2020 and all the auspicious delights from which to gorge for the strong.
On the position of intention to put WN into production drawing similes with the strategy in California. Moreover, significant change in interest from the industry- is that open to a legitimate interpretation of partial farmout to a major player!
AToday 21:34 If I were re-engineering an extended well test at the A location, knowing that it was predominately an oil reservoir rather than a gas reservoir, I would wait for a well to be drilled at the B location before starting the test. Why ? So that I could put pressure gauges down the B well to measure pressure communication and drawdown between the two wells during flow, and so confirm the size of of recoverable reserves more accurately.
Perhaps Piper has a valid argument. It suggests that the end game is to sell proven oil rather than pursue a production route.
Copied & Pasted from UJO board from a poster whom I respect, SB.