Welcome to the new normal in the world of low crude oil prices...it may even hit new low prices in the near future which may possibly be beyond your expectation...Global shakeout of major oil players, service providers is ongoing and will last quite some time more... only the fittest, lowest cost players will survive...
hand itchy bought some at 45sen.. hopefully oil price not drop again 2% lol ! wish all on board good luck.. my remiesier say support is 41sen n next 32sen ..
Debts is ard RM1b+, interest expense ard RM70m+ a year (yet to take into consideration of their Forex loss), likely to post losses in the next 2-3 quarters....they have to survive first before talking abt making profits....
Tonite US market open will see another 3% drop in oil price......and might trigger a massive sell off in Dow jones, then wat will happen to our market on Monday??!!
The Economist magazine-extract: Supporting both lines of Shale n crude oil there will be winners n losers but on a net basis its a good news for global economy.40% price drop motorist in US r spending only Usd800 as compared to Usd3000= 2% pay rise.Tks to to sluggish world prices due to creation of 20,000 new wells in North Dakota n Texas using manic drilling since 2010 more then 10 times of Saudi which boosted by 3rd to nearly 9m barrels/day that is short of just of 1m b/d as compared to Saudi output.The contest between Shalemen n d Sheiks have tipped d world from a shortage to oil off to a surplus.Big net importers like India,Japan n Turkey r enjoying d big windfalls.Global GDP shd rise,will reduce low inflation still further. the Federal reserve will out off raising interest rates for longer.The European Central Bank will act boldly to ward off deflation by buying sovereign bonds. There will be loser oil producing countries whose budget depend on high prices r in particular trouble.Nigeria has been forced to raise interest rates n devalued d Naira.Venezuela looks ever loser closer to defaulting in its debts.The spectre of defaults n the speed scale pr plunged led to unnerved financial markets but d overall economic effect of cheaper oil is clearly positive.Just how positive will depend on how long d pr stays low.That is d subject of continuing tussle between Opec n Shale.Saudi wants to let d pr fall n put high cost producers out of business.That should soon crimp supply causing pr to rise.there r sign that shakeup is already there.The share prices of shale Co have been swooning. Many gone into debts even b4 d start of falling prices since most were investing in new wells, bankruptcy is likely since Shale wells r short lived n any slowdown in investment will quickly translate into falling production but in d long d industry seems assured.
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Posted by annmix > 2014-12-11 12:23 | Report Abuse
stonenut whats yr target price to enter ? below 40 ?