Member Info for NewKOTB

"The cuts are gonna be less than 12m by the looks of it..... "

REALLY, OPEC+ alone will be 11.3mbopd, then add on G20's, PLUS natural decline and shut-ins ... easily closer to 15mbopd if not a lot more imo

laidback, Somehow I don't think you will be anywhere close to that relaxed on Tuesday morning.

Think you need to take a break, trying to influence posters on the back of such mega news, is as the Borg would say , futile.

LOL and here's me thinking you have friends in high places Ammu

Just got off the phone with President Trump and representatives from Saudi Arabia and Russia. We had a great conversation. I’m proud to announce that we came to a formal agreement.

The United States will formally agree to a 5 million barrel per day oil production cut. #OOTT

If managed correctly by OPEC+ / G20 and the world economies burst back into life, we will see POO reach +$80 barrel in 18-24 months imo. The glut of super cheap oil now in storage will be used to power the economies that had the foresight. Whilst the other will be playing catch-up at $80/barrel. Oil will then peak mid 2020's as alternative fuels / global awareness is back in vogue.

Looks like Trump has played a blinder ... buying up all the super cheap oil as expected. He knows this will be the last time the US strategic oil reserves will need to be this full again... the futures electric the futures green !

"Call me a stickler but 100k + 250k does not equal 400k! ..."

Try checking down the back of the sofa IANAA ... Yes, I noticed that, guess Canada maybe took up the slack, who knows .... or more probable Trumps math needs working on. .... At least it's not fake news ..... I hope ! lol

I will be waiting for Tuesday morning bell ....lol

Well, if so timing could not be better .... suspend for a few weeks / months max, back to market with massive war chest on the back of OPEC+ and G20 stabilizing POO to go asset hunting. Or just expand organically which in itself would add 1000's boepd and prove up reserves, SQZ/RRE tie up would and could easily command +$1bn company within 18-24 months

I think a major point that is missed by many is the fact that this agreement will be valid until 30 April 2022.

So, OPEC+ have agreed to work together for two years to stabilize POO....that's the plan anyway.

I think a major point that is missed by many is the fact that this agreement will be valid until 30 April 2022.

So, OPEC+ have agreed to work together for two years....that's the plan anyway.

Amena Bakr
@Amena__Bakr
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20m
From the G20: Canada and the US have agreed to support the Opec plus cuts #OOTT #opec
Amena Bakr
@Amena__Bakr
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51m
Mexico’s president said that the US agreed to cut 250k on behalf of Mexico. So Mexico will cut 100k and the US will 250k #OOTT
Amena Bakr
@Amena__Bakr
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59m
Mexico president : Yesterday I spoke with the president trump about of the reduction of the production and we reach and agreement to reduce only 100 (not 400) and the US will be reduce the other part of Mexico’s share #OOTT

RD12,

Thanks for the discussion.

atb

RD,

"We need more than an average 13% cut. For two years..."

That's why, as stated in the agreement, they will met AGAIN in two months to review and amend deal as required.

RD,

It's only a single sheet !

Don't think you have read it have you .. just taken the headline news figures maybe !

The deal is one that I find difficult for Mexico NOT to play ball with, unless they want something from the US today in return that is?

RD, read the full agreement .... its scaled back during that time 2 months at 23%, then 6 months, then lower still contribution into 2021 / 2022 even less .... down to 8%.

AVERAGE over this period is ONLY 13% CUT IN PRODUCTION.

Lets be honest here RD12, you out and see a massive rise on opening on a done deal :-( otherwise, why bother posting, you are fine if POO falls off a cliff are you not?

rd12,

You don't understand .... the 400k barrel cut a day is for 2 MONTHS ONLY ffs

Oh, one minor point .... the storage tanks would be full in no time if no deal, so not sure where they intend to sell the hedged oil too ..... nowhere to put it. Then they will have to shut virtually ALL their production down, along with the rest of the world. Bang goes Mexico's big budget plans !!! lol

Mexico appears needs it put into simple terms....... as they are incapable of doing the math and logistics themselves.

Note : "not disclosed how many barrels the hedge covers"

So not sure where you got 80% of production from ... if true still allow for 340k reduction. The other 60k would only need to run at a loss for 2 months, ( or bring forward maintenance program for the 60k) after which the requirement from Mexico would fall to 320kbpd ..... so they can do it without much of a problem imo.

They are just being an ar*eh0le

It has not disclosed how many barrels the hedge covers, but said it had secured the price of $49 a barrel set in the 2020 budget.

Mexico produces some 1.7 million barrels of crude per day.