RE: SimpleS....1 Mar 2020 15:12
FWIW, I find myself slightly agreeing with SimpleS on this one and that the market is over-reacting, perhaps to consolidate a much needed fall.
However, this virus thing could have some pretty unexpected outcomes, but don't start me on that now, as I want to do some gardening while it's dry.
Certainly this is the sort of "banana skin" I wrote about a few weeks ago, before we knew about Coronavirus.
The fall in PoO is probably going to trigger an OPEC+ cut later in the week, which will try to keep PoO above $50 and maybe a bit higher - who knows?
The drop in PoO is likely to hurt the US shale producers, which could be good for SL's prospects.
Those making the decisions about SL funding hopefully aren't idiots, so will know that it's the PoO in around 2024 that matters and not today's value.
Whatever Greta says, oil's going to be needed for a while yet, so SL is going ahead.
From my experience, anyone who bails-out of RKH now is a buffoon, or never really believed in the project, or both.
I say "hang on", but treat SimpleS predictions with a pinch of salt and don't put too much faith in his timescales.