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# BG needs BPC more than ever.

Star,

Interesting point. However, surely the best approach for a major or hostile takeover would be to sit it out wait for actual oil to be discovered then stage a de-risked takeover. I can't see sensible money moving in at this risk level. To many imponderables.

Think BPC has to push ahead with drilling somewhat delayed. Plus, BG needs oil now as tourism is depressed for a long time. BG needs BPC move than ever.

Casshy,

Perseverance is my middle name..... ;p

Think we all expected the drill date to be delayed until Oct. Be interesting to see if the paper thought this though would have thought so. I'm still expecting an even further delay past Oct and an agreement the BG to extend the licence due to Covid-19.

GLA

Page,

This is interesting.... makes a lot of sense though...

https://www.energy.gov/articles/department-energy-executes-direction-president-trump-announces-solicitation-purchase-crude

You'd think that as equities are going to the floor with for example DOW bearish death cross 50 d ma crossing 200 d ma that blue chips would announce share buy backs just like Softbank...

Oh well, if only BPC was producing now....

Page,

I always see the futures as a bit of a contrarian indicator.. lol Let's hope you are right and I'm wrong. Anyway closed by short USD/CAD lol Happy days... if only I could say the same for equities...

Can see myself averaging equities to buggery going forwards.

Gents,

Was forced to pop into my local supermarket. What a nightmare that was. Peeps ignoring Government advice. Loads of coughs, sneezes, unsafe distances. Unprotected staff.

Shelves empty of certain foods, shortages of milk, eggs.

Going to the supermarket is deadly these days. Plus, everything fully booked online. Some sites are closed temporarily.

Dollar is selling off don't expect Dow not too.

Rumour has it that certain US Senators purchased all the toilet rolls locally just as they were stating all is going to be fine and it's just a flu pandemic. Plus, they told all their mates to do the same.

FTSE is below 5000 why didn't those US senators contact me lol - I jest... bleeding b&stards

bonum,

Russia is not an OPEC member. It holds observer status and attends meetings as such. At the end of the day the decline in demand for oil is purely based on the pandemic crisis. It will respond, like everything else, to the way that crisis resolves. During that crisis even if the Saudis & Russia limited supply it would have little effect and it would shaft them just the same.

IK,

I was referring to page who suggested that Trump would seize Saudi assets. That would provoke retaliation and break with an ally. The Saudis could then price oil in another currency undermining the petrodollar. All this is doubtful it would happen.

Not really Page, they could price it in Euros. The US would then invade like they have done with the others that did the same, Iraq, Libya, Syria. It would be harder to find an excuse for it. In any event, the Saudis have the dollar in the pocket so Trump won't bluff it. Plus, the Saudis won't want a war so they would get together for a pow wow. That's about it.

Page,

If Trump does that it would spark a dollar crisis as the Saudis could retaliate by pricing oil in another currency.

Not really Rocket,

The impact of this virus on the economy is adversely rapid. We are all going to feel the pinch, if not already, yet. I'm already seeing a 70% decline in my business cashflow and at this rate in 3 months time it will be 100%. Government thinks it's helping not really. It's too indirect and getting a so called business interruption loan isn't really helping. So, I'm not just talking about stocks. What I do know is that all listed firms that are not in some way connected to exploiting this virus are seeing rapid declines. That's going to impact the general market. My view is the government in taking on the virus through business interruption should be writing out cheques. Not just to businesses but to everyone. Literally, a helicopter drop of cash if need be on the streets.

As regards BPC, I feel that we are on much more stable grounds simply due the the relationship BPC has with BG. The worse case of no drill under the current licence I think we would see some form of extension in the licence and that worst case becomes nothing more than a longer delay. So, not really a worse case. The worse case would always be hitting dust.

Think this is very much needed during this extraordinary times.

https://edition.cnn.com/2020/03/19/business/coronavirus-cash-handouts/index.html

Sunak probably announce some half baked measure today

Star,

Please don't assume that Glencore traders or other "big" house traders are more savvy than peeps on here. Most of them are probably just like you and most wouldn't hold PhDs and don't be surprised if some of them use to be former post delivery staff running round traders desks and promoted upwards.

Glencore most likely hedged those tankers with futures and my guess is they are looking for an exit opportunity at this moment.

Star,

If only it could be that easy, the decline in POO is related to declaine in demand due to less flights, less travel, people being told to stay at home, etc. The price oil war is a phony war, really, just to lower the price to keep demand boiling over. Shale jobs can't last if the demand side isn't there.

BPC would be in a stronger position if the company explored options with BG to extend the licence due to CoVid-19 and not make it conditional on a test drill which might be impossible to deliver given this pandemic crisis. Bahamas now has a virus case confirmed.

Reading reports I'm not convinced it will be over quickly. The MOD is preparing for 6 months in advance. In London temporary morgues are being built.

Take care all.

Oct/Nov most likely already getting priced in. Was tempted to top up yesterday, the day before, the day before the day before yesterday.

BoE cuts rates to lowest in its entire 300 odd year history. People are are not working. GDP is going to take a massive hit. FTSE can't survive above 5000 without drastic intervention and even so it still falls. Firms are wondering how they are going to stay liquid. We're all taking a hit on our wealth hoping for a quick turn around. Flight to dollar safety with gilts being sold off. BoE now holds a third of the national debt.

The virus may not yet be reported in the Bahamas but every other island has reported cases, including Cuba. It's raging in the US states NY is out of control.

Army being called to clear bodies in Bergamo, Italy. Iran 1 person dies every minute.

Sorry chaps BPC isn't on another planet. Just being realistic.