RE: Anther fall in Rig counts this week30 Mar 2019 11:16
Boyo...yes it is quite interesting though Trumpy is a populist president and must please voters of drivers and other consumers with reasonable lower op but then he will create big headaches to his own shale companies that need oil prices to be around $50 or lower $50s wti marks to break even on average ,without making hardly any profit or debts.....also SA and other oil producing countries outside usa need op to be much higher than this level to balance their budgets and finance their growth and keep the promised prosperity to their nations and stop popular revolts.
I think there is behind the scenes agreement between the usa and SA for op to be some where around the $70 brent give and take price level ,and this may be acceptable to all involved and for Trumpy to be re elected again and for the SA and others securing USA protection to keep them in power and able to keep their people satisfied.
Op is is a very political issue and will continue to be in the forceable future. We also have many problems to keep the op up or at least to prevent it from sudden falls ...such as Iran,Venezuela,impurity of shale oil in usa and lacks of heavy oil , china/usa trade deal to be announced and so on. I am positive on op now and Q2 but not sure after that.
So once OP reaches $70s brent I will consider getting out gradually and stay neutral but for now I am drowned in oil!
Just imo.
Turning to G I really feel it about time the BOD do something more impressive than now and investment performance is the key now to push the sp up...dividends is good to underpin the sp from sudden decline but not enough to progress it forward.
GLA
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