PP101, Perisai’s first foray into offshore drilling in the oil and gas sector, is leased on a three-year charter to Petronas Carigali SB at a daily rate of USD144,000. Perisai is also expecting delivery of two more jack-up rigs, Perisai Pacific 102(PP102)and Perisai Pacific 103 (PP103), due to be completed in May 2015 and July 2016 respectively.
The market is oversupplied by 2 million barrels a day, according to Mohammed Al Sada, Qatar’s energy minister ------------------------------------------------------------------------------------------------------ Are the OPEC and non OPEC members going to self regulate to cut production by 2 million barrels /day? The answer is NO NO NO
The obvious facts are as follows - OPEC members are not in agreement with one another. Venezuela wanted OPEC to cut production but Saudi Arabia decided against it and wanted the non OPEC members to do so - a member of OPEC had blamed non OPEC members for the price down fall but OPEC had decided against a production cut - Shale Oil production in 2015 will increase further in USA due to huge investments that had borne fruition in shale oil production in 2014 and beyond - Does Saudi really know the marginal cost of producing shale oil in USA?
The recent improvement in Crude Oil price was due to covering of the shorts. The fundamental of supply versus demand does not support an increase in Crude Oil price...the supply of crude oil exceeds 2 million barrels/day now...It may even widen in 2015.
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....
Harry Sinngh
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Posted by Harry Sinngh > 2014-12-19 12:29 | Report Abuse
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