This is really a turtle counter if compared to other oil counter. But slow and steady wins the race la.

Need to clear. 17. Anyone still buying. I am buying up all the way after average down.

OPEC member Nigeria has reined in oil production to bring Africa’s top crude exporter into line with an agreement among producers to curb output, Minister of State for Petroleum Timipre Sylva said. “The cut for Nigeria is about 417,000 barrels per day (bpd), which is about 23% of our production

Because got many hit and run players gua. Lol. Earn 3 percent let go, earn 3 percent let go. buy sell non stop. Never collect one. Lol

Need big volume. Can relax drink coffee.

Brent up 32 d. Wti 28.16

Have faith in human adaptability. We can't hide at home. Even if this covic is here to stay, we will find way to coexist. I believe mco may continue, but it will not block or stop people from travelling in the end. No good, no job, no work, is worse than death. Just a change of lifestyle. And those Arabian countries are smart one, they would control the oil price la. Their only income leh, if tourism hit bad.

The good signs is two months b4, buyers no always less 20 percent than seller. Now is terbalik

Velesto if wanna up, the seller should not be too cluttered give space up ma.

I think this will be a good news and a huge green signal for all oil and gas counters.

Home / Oil & Energy / Oil & Companies News / U.S. commodities watchdog issues blunt warning over oil volatility


The U.S. Commodity Futures Trading Commission (CFTC) has written to exchanges, brokers and clearers in unusually forthright terms to remind them of their obligation to ensure orderly trading and commodity pricing.

The CFTC’s letter, sent on Wednesday, was issued in the wake of unusually high volatility and negative prices in the light sweet crude oil futures contract (WTI) for delivery in May on the penultimate day of trading last month.

The detailed restatement of basic obligations, which should not need reminding, amounted to an extraordinary public warning to the Chicago Mercantile Exchange (CME), which operates the WTI futures contract.

The Commission’s decision to issue a public caution illustrates the depth of concern about what happened in the run-up to the expiry of the May futures contract, and determination it must not be allowed to happen again.

FAIR AND ORDERLY
In its letter, the Commission noted that the coronavirus pandemic has badly disrupted markets and increased volatility across many of the agricultural, energy and financial contracts that it is responsible for regulating.

But it singled out unprecedented volatility in contracts that call for physical delivery, like WTI, as a source of special concern (“CFTC Letter No. 20-17” May 13, 2020).

The Commission reminded futures exchanges they are legally responsible for preventing “manipulation, price distortion, and disruptions of the delivery or cash-settlement process”.

Futures exchanges must ensure markets remain competitive, orderly and fair by employing “market surveillance, compliance, and enforcement practices and procedures”.

CONTRACT EXPIRIES
The letter focused on the behaviour of market participants and prices in the run-up to contract expiry, another sign of official concern about what happened ahead of last month’s WTI expiry.

Futures exchanges were reminded of their obligation “to monitor the convergence between the contract price and the price of the underlying commodity” as expiry nears.

Even more pointedly, exchanges were warned they must “monitor the supply of the commodity and its adequacy to satisfy the delivery requirements”.

In a reference to problems with the deliverability of WTI, exchanges were instructed they must make “a good-faith effort to resolve conditions that threaten the adequacy of supplies or the delivery process”.

The extreme volatility in WTI futures last month has been blamed, in part, on the shortage of capacity to make or take physical delivery of crude oil at the contract’s delivery point at Cushing in Oklahoma.

Exchanges were also reminded they must establish and enforce position limits and accountability levels to prevent market manipulation or congestion around the delivery point.

In effect, the Commission told exchanges that their contracts must be fit for purpose, with an effective mechanism and sufficient capacity to make or take delivery, and not simply free from overt manipulation.

EXCHANGE POWERS
The letter notes that exchanges must enforce rules designed “to protect the market and market participants from abusive practices including fraudulent, noncompetitive or unfair actions, committed by any party”.

Sometimes futures markets are characterised as laissez-faire, but in fact trading is heavily regulated, and the Commission has reminded exchanges they are responsible for preventing a broad range of unacceptable practices.

In a signal that it expects exchanges to get tougher, the Commission reminded them they have the power to intervene in an emergency – without needing to state that it expects those powers to be used if necessary. The letter notes exchanges have the power, among other things, to liquidate or transfer any open positions; suspend or curtail trading; and impose special margin requirements to ensure markets remain orderly and fair.

CLIENT POSITIONS
The letter also contains several reminders to futures commission merchants (FCMs) of their responsibility to manage risks associated with their clients’ positions in futures contracts.

FCMs are reminded of their obligations to maintain effective risk-management systems to protect customer funds, including on an intra-day basis, especially “in light of recent events”.

Crucially, brokers must monitor positions as a contract gets closer to the expiration date to ensure customers can meet their financial obligations and make or take delivery on the futures contract.

It is an unsubtle reminder brokers should not allow customers to run positions close to expiry unless they are satisfied the customer has the logistical ability to make or take physical delivery.

Since last month’s upsurge in volatility, some futures commission merchants have already prohibited smaller customers from opening new positions.

Earlier this week, Iraq, OPEC’s second-biggest producer and the least compliant member in all previous rounds of cuts, was said to have told some of its Asian oil buyers that it would not send the full contractual volumes requested for June. This could be a sign that even OPEC’s least compliant member is trying to play its part this time, as oil prices are so low that they are devastating Iraq’s primary budget income, oil revenues.

Velesto will up. Have deep faith. Collecting and averaging from. 17 to. 14.

He flies everywhere one.

Oil inventories report for USA coming out tmr. Should be less than expected.

"United States Crude Oil Inventories"

http://www.investing.com/economic-calendar/eia-crude-oil-inventories-75

Operator runs so fast XD

The Motley Fool


Search
Ticker or Keyword

Saudi Arabia Moves to Bolster Oil Prices With Further Cut, Says Report
The kingdom says it is going to cut production by an additional million barrels a day.
Howard Smith
Howard Smith
(TMFBuilt2Last)
May 11, 2020 at 12:10PM
Saudi Arabia has announced further oil production cuts that will reduce its output to the lowest level in 18 years, according to a Bloomberg report. The 1 million barrel a day cut is in addition to output cuts previously announced based upon an agreement among OPEC members and other allies. In April, Saudi officials said the nation was producing oil at a rate of 12.3 million barrels per day. With all the announced cuts, oil output will fall to about 7.5 million barrels a day. The oil production cuts are an attempt to stabilize the market and raise prices.

This level of production is Saudi Arabia's lowest since 2002, according to the report. Saudi Oil Minister, Prince Abdulaziz bin Salman, said "We have to be ahead of the curve. The voluntary cuts will further expedite the rebalancing process."

When 1st q report out?

30.53 Brent， 24.25 wti.

Thanks pak Tua.

Today, observe the crowd. Lots of people in the street and SHOPS . Saudi and russia are not going to just wait for the oil price to drop further liao la. Economy down, oil down, they can eat grass d. Shale oil production died down naturally d. Oil demand up coupled with a oil cuts by opecs will send the oil bull all the way up Or can it end with the coronabear slashing the bull? Worst time or best time? Any comments? guys. I am with the bull, at least for now。

buy at.. 17. Manage to average down to. 145.. 255 is a great entry price if u keep for long term.

wait till neck long still no vulume
buyers.

Brent oil price approaching 30.

I thought is 3 ringgit.

Some good news: The global imbalance between oil supply and demand, which has built to 26.4 million barrels per day (bpd) in April due to the Covid-19 pandemic, is set to halve to 13.6 million bpd in May and fall further to just 6.1 million bpd, according to a Rystad Energy analysis. However, despite the improvement, the stock build will still overwhelm remaining global storage, which will fill in weeks.

Global supply is expected to fall in May to 92.8 million bpd, from 98.3 million bpd in April, and further decline to 91.1 million bpd in June. We expect June to see the lowest supply level this year unless further production cuts are announced, with output rebounding from July.

glut pr.jpg

Demand on the other hand, which Rystad Energy estimates will reach its lowest point at 71.8 million bpd in April, will rise to 79.2 million bpd in May and to 85.1 million bpd in June, as governments ease Covid-19-related restrictions and some industrial activity resumes.

Stay up to date and get immediate email notification when we publish COVID-19 related reports and press releases. Sign up here

This supply figure already includes the cumulative 6.5 million bpd cuts we expect from OPEC+ countries, as well as more than 2 million bpd of production shut-ins from non-OPEC+ countries (such as Norway) suffering under the unprecedented market squeeze.

“While this may seem like a drastic improvement from April, the oil market is not magically fixed. The storage issue still looms large and will spill over onto trading floors, as buyers are left with crude they cannot physically cannot place, and into the boardrooms of oil companies which must make very costly but necessary decisions to scale back production and give the market some breathing space,“ says Rystad Energy oil market analyst Louise Dickson.

The demand-supply gap will become narrower in practice as we believe the market will be forced to tighten the stock build gap during May when countries run out of local storage. After local storage is exhausted, tankers will be packed with oil barrels seeking refuge in the country with the most remaining storage capacity – the US.

Until this gap is filled by additional shut-ins (possibly even within OPEC+ countries themselves), we can expect further downward pressure on oil prices, especially those that lack a clear conduit to the export market.

If sufficient production isn’t shuttered by 19 May 2020 (the expiration of the WTI June 2020 contract), then the potential remains for another nightmare WTI price collapse, which we do not rule out spreading to other crude blends. However, given that most oil futures outside of WTI do not require the buyer to physically take oil delivery, and instead have cash settlement options, the destruction to other benchmarks should be tamer.

The negative price crash is most clearly linked to the shortage in global storage. Currently, global storage for crude is about 90% full and for crude oil products, that figure is closer to 80%. Rystad Energy currently estimates that there is 400 million barrels of available global crude storage left, and that crude stocks will build by 13.6 million bpd on average in the month of May.

The math isn’t overly complicated, and at this rate, assuming storage tanks can only be filled to about 95% capacity due to technical reasons, Rystad Energy forecasts storage is already hitting the wall in the markets. And, it could reach capacity at the last storage facility standing, the US, towards the end of May. Cushing, Oklahoma could top up even sooner.

“No matter how this physical rebalancing occurs during May, we still expect that the oil price bottom is right in front of us rather than behind us. The next question for markets now is what the recovery will look like and how many oil companies are able to weather the storm and bring inevitable field shut-ins back onstream,” adds Dickson.

We still believe in an oil price recovery, possibly starting as early as June, and see a risk for a tight market in 2022 with prices much higher than pre-crisis levels. This will be facilitated by a recovery in demand to above pre-Covid-19 levels in 2022, ongoing OPEC+ cuts, and a loss of supply capacity in both US shale and long-cycled global production. Not all production that is currently being shut-in will be able to swiftly return.
Source: Rystad Energy

Great bull trend after a gap down this morning. Wti following.

Brentoil going up strongly after a gap down this morning. Heng ah Ong ah。

Fly to the moon! bull trend for oil. Unstoppable!

Wow.... Glad I bought more at lower price. Top up 4 times. Have faith, velesto. Manage to average down from. 17 to. 145.

Aiya..... Qb at.0.12.... Rise to. 125 d. ....

Don't worry, after epf disposes astro, astro flies a bit now.

same opinion held here.

Wow. Oil price up so fast agreement done d?

Going to fly