Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
With an uplift in Asia looking more likely price may reach 55 sooner than expected......all adds to a rise in the SP come July.
Whichever way the vote goes RDSB will be one of the places to be.....if it's Out then fall will be smaller than most and then bounce back in a week or so, if it's In then a 3% hike looks the likely...... For other shares not paying divis in USD and an out vote then we could see a drop of 10-20%, hold on to your hard hats.....hopefully Glastonbury will take my mind off reality.....at least for a few days.
50 USD + Brent well within reach following Brexit vote......Sale of smaller refineries.....continuing reduction in staff and contractor numbers....well supported divi. All bodes well for Shell even in a time of volatility......
When considering futur dividends this has to be a bargain price.......regardless of Brexit or other factors, In fact it looks to be one of a few shares that could be considered relatively safe if we leave the EU.....certainly in top quartile as far as energy stocks looki at th moment, GLA.
Hoping that the reduction in staff numbers and contractors will be completed this year, plus some of the major projects will be finalised this year, then I expect BP will on the Opex side of the equation be starting to look reasonable v some of its peers.....with Brexit and Soros backing gold I'll wait to invest further.GLA.
Impact of Brexit vote, rig count and further shale ops commencing may hold the rise on SP for a few week, holding on with both fingers crossed....and looking forward to the divi.
Can see another 3% lift here to bring SP inline with other markets, anything after that would be a bonus......mind if JP had their way to keep their punters happy 'who may have been advised on a 1600 price, then it would be dropping right now.....thankfully they got the price per Bbl wrong and a lot of other bets in the last year......long may they suffer....who needs brokers when you have JP around.
News of Shell pulling out of several countries will give it greater leverage in some cases, reducing operating costs and overheads.....gas prices whilst not forging ahead in near term should start to benefit in volumes shipped....all in all worth another 1% on current SP....and good for e ISA anytime it's below 19.00
Good News expected tomorrow which should see a lift to the SP,
From various sites re. Crude Oil Prices....US prod down 9% over last year, around 390 billion worth of projects shelved, crude price of around 75 USD needed to safely finance new projects/fracking, Crude at 60-65 would see many countries still struggle and not kick off much higher prod.....reduced crude output in May from Can, Libya, Venezuela, Nigeria 3.4 mill Bbls. Short term crude to bounce between 40-50 before steadying above the 50. India increases fuel use, Iran prod now 2.2 mill Bbls day, OPEC meet June 2nd no cuts likely outcome, Shell divi looks ok 2016. Time Line Planned Staff and Contractor job reductions decreasing, sale of further assets in 2016 planned, Shares price below 17 a good investment long term. Shell better positioned than most for recovery.
Fuel prices creeping up in many areas by 1-2%. Main and Sub Contractor costs reducing in all areas. Brent holding up. Management costs reducing. Integration Time Line of BG ahead of plan. Sales of non core ops moving steadily ahead. Drilling budgets fully reviewed/revised. Investment Opportunities identified and ranked. Finances in good order.
Current price a good deal for divi tomorrow Thursday.....price of crude looks steady on falling prod and increased use in India and one or two other areas.....fuel prices in Euro and UK increasing by a few pence and cents, same on by products like oil, lubricants....all helping bottom ime.
Looks like run down of crude stocks 'based on current events and cyclical / seasonal use' a clearer long term picture / trend should develop in next 3-5 months. ....an eye on offshore storage run down in next 2 months will be a good indicator / need for price movement, based on this September could see crude at 50-55, which would give Shell a good lift....will also make divi safer....if it continues with Cushing stocks dropping noticeably end year looking at 60-65....fingers crossed.
Lots of well clean ups to boost flow rates are being put back by operators ' esp the smaller ones' all leading to lower future production, as longer periods between work overs, means harder to bring back to full prod. Baker and Schulmberger staff reductions also means work overs will be prioritised for the majors and small Oerators will be at back of the line. Puts likes of Shell in good position when things level out re. Crude Prod v Use. Risk of Leaks and Spills increasing with maintenance cutbacks incl. manpower reductions,longer shifts and reduction in skilled workers. She'll still positioned better than most with integration of BG Ops.
Whilst not huge crude prod from various countries is dropping, Canadian output included.....50 USD /Bbl well within sight.....June OPEC meeting could be the key to any further lift in the crude price, BG integration looks likeky to quicken over and above Shells initial plan.....worth another lift in price/ value.....all add to likelyhood of the divi being maintained into 2017.
Results and implementation of BG integration plan bode well for Shell, looks to be in better position than its peers.....reduced output in non OPEC areas should go someway to help rebalance supply side in 3rd/4th Qtrs. 55-60 USD/ Bbl should be in sight year end.
Next meetings of OPEC in June could see fundamentals change....Russia indicating it wants in and others may accept its time for an agreed prod cut.....might take some agreement between Saudi and Iran.....and whilst remote you never can say never....any agreement would result in a good bounce, if it's stalemate again and Iranians stay away/out of any deal, then a drop back to the sub 40 Bbl likely by late June, in meanwhile May looking good for RDSB both on fundamentals and sentiment....
Based on position and volumes moved in the downstream end, plus the uptake of refined products, Brazil and Aus coming along steady, early closure of several offices and reductions in Capex / Opex, the hold off of the US rate rise till at leasr June.....its looking good for the 4th......18 1/2 in reach and based on other Majors results it could go higher...GLA.
Hopefully RDSB will outshine BP on the 4th, a 4-5 % lift would be nice.......GLA.