The next focusIR Investor Webinar takes place tomorrow with guest speakers from WS Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
WASHINGTON/RIYADH, June 30 (Reuters) – The leader of Saudi Arabia promised President Donald Trump that he can raise oil production if needed and the country has 2 million barrels per day of spare capacity, the White House said on Saturday, rowing back on an earlier Trump tweet that appeared to suggest the Saudis had agreed to boost output by that amount.
Trump told King Salman bin Abdulaziz Al Saud that the oil market could need more supply when the men spoke on Friday, the White House said. The Saudi leader said he was ready to raise output if needed, the White House said in a statement.
"King Salman affirmed that the Kingdom maintains a two million barrel per day spare capacity, which it will prudently use if and when necessary to ensure market balance," read the statement.
However, a source familiar with Saudi Arabia's production plans told Reuters earlier in the week of the kingdom's intention to increase output by 200,000 bpd this month.
Saudi Arabia along with other Organization of Petroleum Exporting Countries (OPEC) and non-OPEC nations, including Russia, had agreed on June 22 to boost production by a combined 700,000 to 1 million barrels a day, so any 2 million bpd-increase would be at least double market expectations.
The White House statement undercut a tweet by Trump earlier in the day when he wrote that Saudi Arabia had definitely agreed to produce more oil.
"Just spoke to King Salman of Saudi Arabia and explained to him that, because of the turmoil & disfunction in Iran and Venezuela, I am asking that Saudi Arabia increase oil production, maybe up to 2,000,000 barrels, to make up the difference ... Prices to high! He has agreed!" Trump tweeted.
In the tweet, Trump said the extra Saudi oil would help offset a decline in supply from Iran, after the United States pulled out of the Iran nuclear deal in May and moved to reimpose oil sanctions.
Trump was not specific on whether the additional 2 million barrels was a per-day figure – but worldwide daily demand is nearing 100 million bpd.
Whitehouse already toned it down, Saudi has 2m spare capacity which could be used prudently, quite different message to that previously by Trump.
WASHINGTON, June 30 (Reuters) – Saudia Arabia's leader has promised U.S. President Donald Trump that the country will produce more oil if needed and that it has 2 million barrels per day of spare capacity, the White House said on Saturday.
Trump told King Salman bin Abdulaziz Al Saud that the oil market could use a boost in production when the two men spoke on Friday, the White House said. The king said he was ready to boost production if needed, the White House said in a statement.
"In response to the President's assessment of a deficit in the oil market, King Salman affirmed that the Kingdom maintains a two million barrel per day spare capacity, which it will prudently use if and when necessary to ensure market balance," the statement said.
£700/month in Thailand is surviving, no decent quality of life. A cheap room could cost 5k baht / month, doesnt leave a lot for eating out / shopping or if theres an emergency. I budget for £2k/month. All prices have increased significantly, some areas quite trendy / cosmopolitan, no longer the 3rd world country it was years ago.
FYI, new investors presentation http://www.premier-oil.com/sites/default/files/presentation/180627-investor-presentation_0.pdf
Thanks Branson, are you seriously telling us Reuters is incorrect, a 1.5mln bpd increase is not being considered and should refer to a poster on Enquest BB instead?
MOSCOW, June 16 (Reuters) – The OPEC and non-OPEC countries in a global oil output deal will consider increasing output by 1.5 million per day in the third quarter only, Russian Energy Minister Alexander Novak said on Saturday, the TASS news agency reported. Russia and Saudi Arabia have agreed to extend cooperation indefinitely and will discuss the agreement in Vienna next week, Novak said, TASS reported.
Pmo is joining FTSE 250 on Monday. Wt will be the impact on share price ?? Sell on news, old news at that! Any buying will be short lived, OPEC meeting later in the week expecting a further retrace. GL
Thats a negative impact of $15-20m to BW Offshore which I assume would be payable to PMO, every little helps.
Thanks for the update MO, do you have the date of the previous offloads, based on the assumed current offload by Stena Natalita what would it equate to as approx bopd?
Buy side liquidity at different price points, only small orders on the book at 95.75 ie maybe only orders for 500 shares on the touch, whereas could be 1m at 93p. It's not manipulation we've all got prices we're willing to buy / sell at.
It's comments like that which show your complete lack of understanding of the market.
Although FOGL will be gaining DES assets, acreage and $9m cash which allows access to the NFB and in doing so reduce risk to FOGL there will be additional shares. I'm not expecting an immediate rise following the merger, however the merger shall allow FOGL/DES to get the rig signed which is when we will see the next major rise and could be anytime after the merger. At the current SP's the market cap would be £140m, fully funded for a 5 well campaign with massive acreage covering both NFB & SFB. The next 12months should be interesting with good potential upside.
FOGL vs DES DES is currently better value than FOGL. Ignoring dealing charges / stamp duty, assuming you bought £1000 shares in FOGL at 27.25p, this would give you 3669 shares but if you bought £1000 DES shares at 16.25p this would give you 6153 DES shares but after the FOGL takeover these would convert to 3829 FOGL shares gaining yourself an extra 160 shares or about 4.5% more shares.
I too sold out immediately after the oil to water fiasco, with nothing but wildcat drilling ahead holding would've been utter madness. However, thats not where DES is today. I'm back in, current SP 13.5p, they've oil and RKH / PMO will bring Sealion to production and exploration drilling within Des acreage, farm-in news expected soon. I'm not making any predictions about the SP over the coming weeks or even months but for those prepared to wait, at the current SP both DES / RKH are a strong buy imo.
Rkh/pmo will need to drill in des acreage and in doing so meet Des licence requirements. Lots of news due soon; farm in, unitisation agreement etc. pmo will bring sealion to production and des has to be part of negotiations.
Columbo, there is no sense to what you are posting, why on earth would the bod wait until such a low to raise funds. At the current mkt cap it simply wouldnt be done.
Despite their limited cash they are in a strong position, they have oil, Sealion is going to production and Des will be party to any negotiations. Their low mkt cap limits funding options, dilution is not a possibility at this price leaving a choice of sale or farm-in. The data room opened Feb 4th, I'd expect to hear something in the next couple of months. It's a buy imo.
Des should never have been 180p, massively over valued at the time but a lot has changed, although lacking in funds they have oil and will be part of any agreement with pmo/rkh who are committed to moving forward to production of sealion. I expect pmo/rkh to do very well over the next few years, and des too on the back of this.
Absolute nonsense imo. I avoid pharmaceutical companies incredibly high risk, endless research, years of trials and the majority never come close to production. Many research companies focus their efforts on a particular area or drug which can lead to a binary outcome of either success or failure, but mostly failure. Their SP volatility reflects the risk / reward.
Good post,exactly my thinking, share raising is simply not an option at the current mcap. So, farm-in? DES have to be part of the negotiation, the field development plan cannot be approved without them, they have the potential to be a real thorn in the side of RKH/PMO, it wont be a give away. Farm-in / sale are the only options imo. Whatever happens I expect the SP to be significantly higher once newsflow returns, also prepared to wait until 2015 if need be. Its a buy imo.