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Hopefully the vampires at Goldman have heard your prayers Pelle. They are predicting a movement into and through the 50's next year based on demand increasing and output reducing. They did though qualify this by saying a vaccine would be needed so I guess everybody on this board could have made this prediction.

According to AMA, the Global Bunker Oil market is expected to see growth rate of 9.5%.
Major Players in This Report Include,
Aegean Marine Petroleum Network (Greece), World Fuel Services Corporation (United States), Chemoil Energy Limited (United States), BP plc (United Kingdom), Ocean Bunkering Services Ltd (Singapore), Hindustan Petroleum Corporation Limited (India), Exxon Mobil (United States), Royal Dutch Shell plc (Netherland), Sentek Marine & Trading Pte Ltd (Singapore), Gazpromp Neft PJSC (Russia), Chevron Corporation (United States), Petrochina International Pte Ltd (Singapore) and Total S.A. (France)

Bunker oil refers to fuel used for the ship's engine. Growing shipping industry driving the demand for bunker oil. For instance, recently the Maritime and Port Authority of Singapore (MPA) announced the Sales of marine fuels in Singapore by volume was 49.8 million tonnes in 2018. Further, increasing government initiatives to reduce marine pollution expected to drive the demand for bunker oil. For example, Cosmo Oil a Japanese petrochemical company announce to start supplying 0.5% sulphur bunker fuel from October 2019. In addition, increasing offshore exploration activities expected to drive the demand for bunker oil over the forecasted period.

hope he's right - at this point in time i'd happily take 40

Hey Therapist

You speak for yourself....... I want the money

haha not sure everyone will share your relief Londoner.

Just after the swap to the 7% PIK they paid out at fair value - They then changed to just the coupon. Looks like somebody in the Enquest finance office caught on.

I agree with Romaron, they're not for everybody - This is my third time holding them. I took the originals at the IPO. Generally and compared to the equity I've done well with them and will hold now until maturity whenever that is. They're only a fraction of my Equity holding which I am equally optimistic will come good. No more black swans please

I hold the PIK. They yield around 11% and in my opinion are no more of a risk than the equity.

But what do I know I've already lost many £000's on ENQ and Petrofac (paper losses anyway)

I wasn't just publishing a view on the oil price..... Your right Kraken that's finger in the air stuff and no doubt some ulterior motives in play.

I was coming from the angle of do we want the oil price higher and prosper that way? Or do we prefer oil lower for longer and hopefully see the continued collapse of US shale and prosper that way?

U guess the answer is both but maybe that's not on the table

The U.S. shale oil industry may collapse due to the sharp fall in oil prices because of coronavirus, a new influential report predicts.
The demand and price of oil tumbled due to the economic slowdown and has since begun to recover, but Australian think tank the Institute for Economics and Peace (IEP) warns a low price will affect political regimes in the Middle East, especially in Saudi Arabia, Iraq and Iran.
The impact of coronavirus may “result in the collapse of the shale oil industry in the U.S., unless oil prices return to their prior levels.”
— Institute for Economics and Peace
Its annual Global Peace Index, published on Wednesday, analyses tension around the world and compiles an index of the most peaceful countries. It suggests the impact of coronavirus may “result in the collapse of the shale oil industry in the U.S., unless oil prices return to their prior levels.”
While the price of oil has begun to recover, on Tuesday analysts at Goldman Sachs warned in a note that the rise in the oil price has been overdone and forecast a drop in Brent crude prices to $35 a barrel, from around $43 a barrel, within weeks.

Thanks E121
I appreciate hedging is risk mitigation if done properly and meant to add that to my comments but pressed send too soon (the gin I think). What I was trying to say is if simply put.....hedging is trying to fix a price or price range that you can sell (or buy) at a future date, you only know if you've done this well when it's too late?

Or am I looking at this too simply?

And I agree with Pelle - Under the current circumstances I would have no problem if Enquest hedged at a reasoanble price above the level where they can still reduce debt

wow i'm rich - was waiting for just 350 but now I'm off to live in Monaco

Don't you think second guessing hedges in hindsight is just that..... hindsight?

What if they hedged at say $65 and made good money..... But then the price rose to say $80+

Would we then be upset about the opportunity missed?

Every hedge is a gamble

oil may well be $50 by q4, or more or less who really knows..... But a lot less of it will be used, oil price is only one side of the equation

ye of little faith hardup!

Plus unless you are day trading just tuck this one away and enjoy the ride

IMO a large slice of the risk has been removed from the RB - Especially following the recent RNS

I've jumped back in although the spread was painful

Very timely and much welcomed RNS - There hasn't been much good news around

Hi Chilting
If it's singapore does that mean it's likely for fuel oil?
Cheers

I'm not sure who the thick one is.......

An asset is worth what people are prepared to pay fo it....

If you're so clever then simply short L&G and fill your stockings with Aviva.....

But you won't

I've said this before but I really do think it's the end for a lot of the shale bandits...

No doubt some of the better assets will contunue albeit possibly under different owners but even the in the gung ho world of shale I can't imagine why anubody will pick up the >$45/50 assets - Unless of couse the orange man decides differently

Another clip from Sweet Crude.....

Few have a better watchtower over oil demand than Joe Gorder, chief executive officer of major U.S. refiner Valero Energy Corp. But this week Gorder didn’t even need his business insight to know that fuel consumption was starting to recover in America.
He only needed to look at the streets of San Antonio, the Texas city where he’s based, to see traffic emerging after weeks of lockdown.
“People are starting to get out more,” Gorder said. “I think there probably is a pent-up demand for folks to get out of their houses and get mobile.”

From the streets of San Antonio to Barcelona and Beijing, traffic data, sales at fuel stations, and pipeline flows all suggest that the slump in oil demand probably bottomed out around the middle of April, and has now started a modest — and very tentative — recovery. The signs matter beyond the petroleum industry as they provide a glimmer of hope after a torrent of negative economic data.

Clip from an article on E&E ....

The biggest impact is likely to be in the Permian Basin, where the majors have invested heavily for the last few years. Chevron plans to curtail its Permian production by 125,000 barrels a day, and Exxon will shut down 75% of its drilling rigs in the basin by the end of the year.
ConocoPhillips plans to go even further, cutting production 460,000 barrels a day by June across Alaska, the rest of the United States and Canada.
The ripples are spreading across the rest of the industry. The number of rigs drilling for oil onshore in the U.S. fell to 325 on Friday from 378 the week before, according to Baker Hughes Co. The rig count has fallen by more than half since March 13