U.S. West Texas Intermediate (WTI) crude futures hit a low of $19.92 in early trading and last traded down 5.2%, or $1.12, at $20.39 a barrel as of 2332 GMT.
Brent futures fell 5.6%, or $1.40, to $23.53 a barrel.
this could be a long hold. If u got a lot of capital, long hold should eventually make money. Else, there are many counter on sale can choose. After virus, still need to see how is the oil discussion end up.
Not sure you can value Carimin using FY19 result anymore. Petronas will surely revised its capex spending if oil remains around $20. Malaysia is a lot worse given our oil is sweet crude which is use for jet fuel and gasoline. Now there is no demand for this type of oil. Nigeria are dumping their sweet crude at a discount of $8 vs Brent which is unheard of before. Good luck
World Bank cut Malaysia 2020 GDP target for Malaysia to -0.1%, a significant drop from its earlier target of 4.5%. Dow jones drop 410 points last night. Dow jones future drop 250. No more window dressing. Today will big drop. Warning.
Oil is entering a period of unparalleled demand destruction this month that promises to transform the industry for years to come.
Daily consumption will plummet by 15 million to 22 million barrels in April from a year earlier, according to estimates from some of the world’s most influential energy analysts. The crash has already led to refiners slashing processing, drillers halting output and storage tanks swelling across the world.
The demand slump is being exacerbated by former OPEC+ allies Saudi Arabia and Russia pumping as much crude as they can in a battle for market share, heaping additional pressure on shipping, tanks and pipelines. Goldman sees around 20 million barrels a day flowing into storage in April, while IHS Markit expects the world will run out of space to store oil by the middle of the year.
"Oil price likely to be moving towards USD15/barrel based on the above scenario"
"Few in the industry will be spared. April is also set to be the worst ever month for global jet fuel demand, while industry consultant FGE forecasts American gasoline consumption will plunge by 50% from a year earlier. Energy Aspects Ltd. predicts global benchmark Brent crude may drop to near $10 a barrel, a level not seen in more than two decades."
yea.. oil market is not only impacted by virus. So, it's going to be a long battle before it can really go up. By the time you pump petrol and it cost you > RM 2, then only come back to look at this stock maybe.
If u guys want to look at the brent crude price. Better looked at the dated brent which is the price of the physical cargoes now. Last i check it was only $17 per barrel. Should be lower today.. the ice brent that u see in bloomberg are futures contract. Today bloomberg starts showing the futures brent for june delivery. Yesterday it was brent for may delivery. Hence why u see the sudden price increase today from $22 at yesterday closing to $25 at today opening. Oil did not go up. Just that the 2 contracts are price differently with longer tenure future having premium over shorter ones (contango market).
Most o&g project uses dated brent as reference (at least petronas does).
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Sslee
6,860 posts
Posted by Sslee > 2020-03-25 18:27 | Report Abuse
Haha
No steam or because Hebertchua is too heavy to move?