Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
DNO........
3rd Jan .........11.53 KRONA
Today.............4.15
Much worse than our fall.......
Not that it makes me feel any better.
Always said if we ever got below £1 I would go but as its not directly Genel related still holding firm.
Next week we could have a smile or 2 back........
Hawkey
Hawkey
Never saw us going this low but its the same for everybody.....
Not posting much as until next week really don't know where we are going.
Holding and hoping........Still much prefer to be in here then lots of others.....
Hawkey
Not sure which is worse......
Opec/Russia/Usa
or
Corona Virus.....
I think there is much more of this blooming virus to come, 1000s less flights, cruises etc....
I don't expect much good news until late summer but at some stage Corona virus will be controlled and the oil market will rebalance higher.......
Its very unseals to say this for Genel but...You need a lorra lorry patience......
Hawkey
Don't forget there are many REASONS TO BE CHEERFUL......hnnnm...
We know the world yes the whole world cannot survive at oil prices this low. Nobody....
We know every oiler in the world has been smashed and we have done much better than most in the last 2 days.
We know that Iraq and Kurdistan have always had a love on, love off relationship.
We know Genel can pay its dividend at 40$ oil and oil is massively over that except last 2 days.
We know that we have fantastic prospects which are getting closer every day.
We know we have 2 huge gas fields and are told we are within touching distance.
So whilst I am many many tens of thousands of pounds down Im still holding strongly.
Keep The Faith...........
Hawkey
Whilst I accept that payment are behind, the situation is pretty clear to me........
If Iraq or KRG do not pay DNO/GENEL/GKP/DANA/SHAMERON..etc etc for their oil......They will stop producing it......Its very simple.
So whilst I 100% its an issue I believe we will get paid. Oil is what make Iraq and Kurdistan tick.....
Hawkey
10% closing spread.......
Never seen it that big since Taq Taq....
Some very very sad looking shares around tonight and I’m sure the markets functionality worked well today......
Looks like most if not all of the lifers are still here...
Well done all....
Hawkey
Having seen oil get decimated last night and knowing how bad today was going to be I decided to not torture myself and not look until after the market was closed...
We have done ok considering and hopefully things will improve soon...
Hawkey
This is the time when the stock market functions t its most efficient in terms of parting people from their money
There are already numerous stories on boards saying oil will drop to X or Y tomorrow.
Dont panic......Keep calm Mr Mannering.....
Hawkey
Oil traders are looking to historical charts for an indication of how low prices could go. One potential target is $27.10 a barrel, reached in 2016 during the last price war. Some believe the market could go even lower.
“We’re likely to see the lowest oil prices of the last 20 years in the next quarter,” Roger Diwan, an oil analyst at consultant IHS Markit and a veteran OPEC watcher, told Bloomberg, implying that the price could fall below $20 a barrel,.....
Ouch.....
Hawkey
The shock-and-awe Saudi strategy may be an attempt to impose maximum pain in the quickest possible way to Russia and other producers, in an effort to bring them back to the negotiating table, and then quickly reverse the production surge and start cutting output if a deal is achieved, Bloomberg said.
The production increase and deep discounts mark a dramatic escalation by the Saudis after Russia rejected an ultimatum on Friday in Vienna at the OPEC+ meeting to join in a collective production cut. After the talks collapsed, Rusia indicated countries were free to pump-at-will from the end of March.
“Saudi Arabia is now really going into a full price war,” Iman Nasseri, managing director for the Middle East at oil consultant FGE, told Bloomberg.
With jet fuel, gasoline and diesel consumption rapidly decreasing amid the economic impact of the coronavirus outbreak, the energy market now faces a simultaneous supply-and-demand shock.
Hawkey
I think your right but for some bizarre USA rules I don’t think Shale can play Chess even if wanted to.
This price is bad for everybody and a cut may have helped prices a bit. However everybody throwing their toys out may quickly focus minds also....
My view is oil 35 to 45 dollars until Corona virus sorted then massive global spending from central banks, interest rates at 0 to 0.5% and a kick started world economy.....
WTFDIK.......
Hawkey
Re U.S. shale : The shale producers debt/loans are reviewed and adjusted or renewed twice a year. This takes place in APRIL and OCTOBER.
Next month, April just might be the day (month) of reckoning. Yes, this downturn is related to a once in a lifetime event. Yes, oil price will eventually bounce back. By how much and when not sure.
I think the banks and bond holders will stop this never ending cycle of life support for small and medium producers that recklessly destroyed their balance sheets years ago when the margins were fat.
Courtesy of oilprice.com..
Hawkey