RE: oil price drop29 Feb 2020 18:38
China imports 10% of global oil production.
The means it has adopted to deal with the virus means there could be weeks, possibly months where it requires no oil supply.
That kind of thing has a bit of a knock-on effect.
The price of oil is based on future supply (six month contracts?)
The market is saying they think that's what the supply will be worth then.
I would be loath to tie UKOG in to that valuation yet as we do not yet have global consideration.
When the price of Brent has risen or fallen sharply before, the effect on UKOG's SP has been noticeably lower than that of say, BP.
On a 'normal' day-to-day basis the effect has been negligible to non-existent.
That's not to say that one day, things might be different.
:)