Share price5 Dec 2018 09:33
As we all know momentum and liquidity is the issue here with short term price movements.
The disappointment shifted momentum to the negative and liquidated issues have pushed us down as some investors have tried to game the sp.
For what it is worth my take on the funding isn’t so much the violation oil price. This has been a product of the Iranian sanctions. Ramp up
To $85 on the back of expected Iranian sanctions and output shortages only to be hamstrung by the exemptions that trump gave out. Some markets became over supplies so the price tanked. A rebalance will happen in energy as the temporary exemptions are removed in q1
My opinion is based on the recent blow outs on credit spreads particularly in the sub investment grade. Institutions don’t have the easy money that QE afforded the market. As brexit looms UK institutions will have been told to sit on projects. Unfortunately this puts us back. We. May have a great viable project but with spreads widening, financing has become more expensive
I would suggest the bod are waiting for spreads to come settle down and a better deal for funding costs to improve the return on the project. Again Harvey will help with that
Hold em
Tight