International Consolidat... Share Discussion Threads

[m1k3y1] 13/4/2020 09:27

Motley Fool.......it's all in the name.

[qantas] 13/4/2020 09:05

Please do your own research as always.

[hamhamham1] 13/4/2020 09:03

Whilst the oil deal isn't necessarily the solution to the price drop, I think it will at least put a more stable floor beneath the pricing.

[loganair] 12/4/2020 21:14

It looks like BA have retired all their A380s permanetly and for good as they have flown them all down to Chateauroux in France for what BA call long term storage.

[ny boy] 12/4/2020 20:07

Boris is back, nurses should be in for a pay rise, more money not clapping

Onwards & upwards here, ignore the noise, unlock by mid June imo

[qantas] 12/4/2020 19:25

BBC News - Boris Johnson thanks NHS staff for coronavirus treatment


Welcome home Boris

[laurence llewelyn binliner] 12/4/2020 14:20

#m1k3y1... off topic for this thread but you are correct, it is a Cartel, collusion, price fixing, market rigging, it is not free market pricing, simply because most of Oil production globally is state owned/controlled Aramco/Rosneft etc and they absolutely have to have USD50/60 Oil for their governments to function to pay for everything as these are not industrial powerhouse economies like Germany collecting large tax receipts, they are totally dependant on Oil revenue, Saudi, Russia, Venezuela, Mexico are a few of the biggest and they will have to rig the price by throttling back supply so the Governments can continue to function, not to mention corruption can continue as well..!

Saudi has built up a huge war chest of cash over years, and the US have become increasingly less dependant on imports over the last 5 years, Saudi wanted Russia to collude with them again to try and bankrupt the US shale drillers to hurt their independence, Russia preferred to fight for market share instead, so the flood gates opened..

None of them considered what if there is a 15% global downturn in consumption, now as all the worlds storage capacity has almost reached max they are forced to collude again to manipulate production until prices recover to where they can all pay their bills.., the supply vs demand numbers have to balance whether they all like it or not as no one has any storage big enough to hoard it, better off leaving it in the ground where it was, and we will see it play out next week.. :o)

I see IAG as the strongest in a very vulnerable market sector to survive the current crisis without Gov bailouts and equity dilution, great value at 200p down from 600p, yes they might go lower, but the strongest will survive to mop up the routes others that fail leave behind, as well as their customers increasing revenues over time..

[hamhamham1] 12/4/2020 13:19

Producers make the rules as it's currently still such a key commodity, the world needs it produced to function. So until scalable rivals to oil appear, it's whatever they want or need to keep the supply going then they pretty well get it.

[m1k3y1] 12/4/2020 12:29

ham....I never understand this Oil pricing.
It is after all a monopoly, with the major oil producers fixing the price.

Why is it allowed, when price fixing is illegal in most countries , certainly in the UK and EU ?

[hamhamham1] 12/4/2020 11:56

Interesting re mexico oil hedges, no real inventive for them to cut. They offered 100k bpd cut, Saudi want 400k cut. I reckon settle at 250k cut.

[qantas] 12/4/2020 08:58

BA sad news.

[m1k3y1] 11/4/2020 15:56

Qantas....it's an old article and IAG has just extended it's credit facility......
I suspect that a lot of companies will have had their ratings cut but frankly it is of little importance at the moment. All kinds of funding is being made available from numerous areas....if needed and Walsh says IAG doesn't need it.

[qantas] 11/4/2020 15:22

Please do your own research as always.

[loganair] 11/4/2020 12:49

I understand unlike VAT which is a pecentage of how much in money terms fuel is being sold for, the Fuel Duty element is a fixed amount per 1,000ltrs and therefore doesn't not change when the price of petrol at the pums goes up or down.

[m1k3y1] 11/4/2020 12:44

Apologies for off topic.

LLB.......if there is a 50% drop in the oil price element, then there should also be a 50% drop in the additional elements you show.

Oil dropping from $60+ to $25+ a barrel is not reflected in petrol dropping from 122p to 100p. The problem here is that the fuel duty has not dropped by the same 50%.

According to the RAC, Brent Crude on 16th May 2019 was $74.76, on 23rd March 2020 it was $22.16.
Fuel over the same period was 31st May 2019 £135.54, 23rd March 2020 £123.15

Fuel duty , which has been frozen since 2011 is 57.95p.
In real terms, fuel duty as a % of the total has substantially increased.

So UK GOV is doing very well from the duty at the moment (although less vehicles on the road due to COV 19).

Interestingly, Brent Crude in 2011 was between $96 and $122 a Barrel

[laurence llewelyn binliner] 11/4/2020 12:03

#m1k3y1..

Petrol at say 100p/litre is 57.95p fuel duty, 20p VAT, and 22.05p for the Oil refiner/distributor, so the result is for example a drop from 122p to 100p in price which does reflect a 50% drop in the oil price element of the cost..

[edit], the duty level is fixed, only the VAT at 20% floats with the sale prices, so roughly 80% of the fuel price is tax..

IAG at 200p is a calculated bet that only the strongest capital position airlines will survive, and the flag carrier being my choice, the rest will all need bailout loans, or even worse equity dilution from Gov intervention which is the last resort the BOD and everyone wants to see, EZJ and Virgin/Delta are in a much weaker position...

[jailbird] 11/4/2020 11:59

Not sure oil will jump .OPEC+ cuts are not deep enough . Need $30+ bopd cut to debt supply Oil prices both fell after news on Thursday

[m1k3y1] 11/4/2020 11:48

You will notice though, that petrol at the pumps is still above 100p.
Does not in any way reflect the drop in the oil price.