The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
Well it’s a step in the right direction but unless the outcome delivers some form of fiscal stability over an investments lifetime, irrespective of changed Governments, then that outcome will likely be met with doh !. ( Interesting Paper posted by Kokomo) .
Meanwhile we need that chilly wind blowing from China to dissipate.
Some of the fast money will already have gone here as Traders have spotted another candidate for a quick buck. No problem, as the fundamentals haven’t changed here for those with a little more patience and perhaps not quite so desperate to pay this months rent !
Plenty of reasons to be Oil positive …. OPEC maintaining current stance / Russian Oil Port now being targeted/ increased aviation traffic & Peak Demand still at least a decade away. And the US haven’t yet started replenishing SPR.
Saudi Arabia said it will extend a voluntary oil output cut of one million barrels per day (bpd) for a third month to include September, adding it could be extended beyond that or deepened.
Meanwhile Deputy Prime Minister Alexander Novak said Russia would cut oil exports by 300,000 bpd in September.
That’s probably why we’re not seeing a pure Op’s update in Aug. AB may feel he needs to provide greater clarity on Financials and Outlook / SH Returns, that is best done in a HY Report. With a good chance the POO will be higher in Sept. we may be able to surf over any negatives by then and throw off the life jackets !
Well hopefully now that Sunak has stated the Tories ambitions for the NS, this should put pressure on Labour to come clean and state their own position. Without this clarity you can’t expect huge multi year investments to proceed within any UK Government’s jurisdiction, one danger of course is that may be their plan. This dark cloud needs to lift, and quickly.
Wonder if Labour know the rate of depreciation on EV’s. Onto, one of the UK’s largest electric vehicle leading groups which has already burnt thro $350m of funding desperately needs more cash. Problem being its funding is secured against a fleet of cars which are dwindling far quicker in valve than originally predicted. So another Net Zero own goal by the look of things, won’t be long before my trusted Diesel actually goes up in value !
Not a great fan of BP’s chief Bernard ‘cash machine’ Looney but yesterday said he saw oil demand continuing to grow into next year with OPEC+ being increasingly disciplined. Collectively that “ creates a situation where you’d describe the outlook for oil prices to be strong over the coming months and years.” No surprise he’s lifted their Div. another 10% , hope AB’s paying notice otherwise
that ratio will rise further.
Would be helpful if rationale was provided against these SP guesses. Personally feel we need the OPEC meeting ( this Fri) out the way first and confirmation SA will continue with its voluntary 1m bpd cut for Sept. If not expect OP to weaken and thus SP, and vice versa !
Agree, this is the first positive sign that they are at least prepared to listen to Industry. Maybe the Chancellors Autumn Statement will reveal what that listening has achieved and just possibly support the next round of Licence approvals. Irrespective can’t imagine Ed.M is having the best of days !
One question is will the Saudi’s extend their voluntary output cut of 1m bpd into Sept. and then what happens for Oct. Irrespective feel we should hold $85 + by Q4 , given demand side coming from the likes of India/ US whilst China gets over its self administered virus.
With global oil demand thought to be circa 102.8m bpd in July, that will have outstripped supply again so my bet is SA will keep the pain on !
Interesting , thanks. Personally I’m more interested in 12 months from now when I expect we will be sitting quite a bit higher than today. PL in recent interview seemed to beam confidence, as I suspect he knows where this is heading !
Also news last week that DB Cargo UK ( owned by German State Railway ) and one of the UK’s largest rail freight operators, was pulling its electric trains from service and replacing them with diesel models because the high cost of energy meant they were becoming too expensive to run.
The trade body the Rail Freight Group, said: “DB Cargo are behaving exactly as would be expected of a company in their position having to cope with commercial reality.” At some point the penny will drop !