Harbour Energy Share Discussion Threads

[csmwssk12hu] 08/2/2021 08:40

Looks like 21p is about to be pushed through

[csmwssk12hu] 08/2/2021 08:08

$60 just been ploughed through

[csmwssk12hu] 08/2/2021 07:57

The divergent returns between the energy sector and consumer staples sector — the top-performing and worst-performing groups this year, respectively — indicates that the market is betting on an economic comeback and return to growth.

[csmwssk12hu] 08/2/2021 07:50

From cnbc
Hedge funds are turning bullish on oil once again, betting the pandemic and investors’ environmental focus has severely damaged companies’ ability to ramp up production.

[csmwssk12hu] 08/2/2021 07:49

From Dow Jones News Wires by Joe Wallace
A booming rally in oil markets has pushed crude prices to their highest levels since near the start of the coronavirus pandemic, powered by production curbs and recovering demand.

Brent-crude futures, the benchmark in energy markets, have risen more than 50% since the end of October and are approaching $60 a barrel for the first time since Covid-19 began to erode oil demand in early 2020. Futures for West Texas Intermediate -- or WTI, the main grade of U.S. crude -- last week surpassed $55 a barrel for the first time in over a year.

The speed of the recovery has surprised some investors and analysts, given that coronavirus continues to curtail demand. It has juiced shares of companies including Exxon Mobil Corp. and ConocoPhillips after a troubled 2020 for oil-and-gas producers, making energy stocks the best performers on the S&P 500 this year.

"The market definitely has some momentum," said John Kilduff, partner at Again Capital LLC, a hedge fund that invests in energy derivatives. "WTI is going to be targeting $60, too."

Oil is rising against a mixed economic backdrop, with data published Friday suggesting that the labor market faces a long road to recovery. But the stock market continues to power higher, in part because investors expect a new dose of fiscal stimulus and vaccines to goose growth.

American drivers are already paying more thanks to the rally in crude. Nationally, gasoline prices have climbed to an average of $2.46 a gallon from $2.12 at the start of November, according to GasBuddy, which tracks retail fuel prices.

Gasoline prices are likely to keep climbing. Crude's recent advance will take two to four weeks to translate into higher prices at the pump, said Patrick De Haan, GasBuddy's head of petroleum analysis, though he doesn't expect to see gasoline hit $3 a gallon on average any time soon.

Behind oil's rally: Huge stockpiles that accumulated in the early stages of the pandemic have winnowed down faster than many people expected. Traders say that could pave the way for further price gains if demand, which has already recovered in China and India, picks up in developed economies.

The fall in inventories is largely down to efforts by the Organization of the Petroleum Exporting Countries and its allies, led by Russia, to restrain production. Since agreeing to the cuts at the peak of the crisis in energy markets in April, producers have held back a cumulative 2.1 billion barrels of oil, OPEC said last week.

U.S. companies have also helped to prevent production from swamping demand. Global appetite for oil remains below pre-pandemic levels despite a pickup in consumption of gasoline, naphtha and fuel oil, which is used to heat homes and power ships.

American producers are pumping 17% less crude than they did on the eve of the pandemic, according to the Energy Information Administration.

All this has pulled the amount of crude oil and petroleum products stored around the world down by about 5% since its peak in 2020, according to Morgan Stanley analyst Martijn Rats.

There is no shortage of oil, but one sign the market is tightening stems from the relationship between current and future prices. Spot prices have climbed to a premium over prices for crude to be delivered down the line, showing that traders are willing to pay more for immediate access to oil.

On Friday, WTI contracts for oil that will be delivered next month cost $5.16 more per barrel than contracts for crude that will change hands in March 2022. That is the biggest premium for front-month futures since the start of the pandemic and contrasts with a historically large discount last April, when a glut of oil pushed WTI prices below zero.

"It is a bullish indicator," said Scott Shelton, an energy analyst and broker at United ICAP. "I don't think there's any question about that."

Analysts say this dynamic -- known as backwardation -- has been exaggerated by a slowdown in purchases of long-dated energy contracts by airlines and other companies that buy them to hedge fuel prices.

Still, some investors say the condition shows the rally has further to run. It gives traders an incentive to take oil out of storage, because they earn more from selling it straight away. That in turn would bolster prices by whittling down supplies. Lower forward prices also make it harder for producers to lock in profits for barrels they will sell in the future, encouraging them to keep oil in the ground.

Backwardation could encourage more money managers to bet on crude, said Mark Hume, co-manager of BlackRock's BGF World Energy fund. When spot barrels of oil fetch a premium, funds earn a profit when futures approach expiration and they flip their position forward into cheaper later-dated contracts.

[stansmith3] 08/2/2021 07:31

Ah, we are back to fundamentals...does that mean you have given up on the reddit pumppmo squeeze?

[csmwssk12hu] 08/2/2021 01:39

From Dow Jones News Wires by Joe Wallace
A booming rally in oil markets has pushed crude prices to their highest levels since near the start of the coronavirus pandemic, powered by production curbs and recovering demand.

Brent-crude futures, the benchmark in energy markets, have risen more than 50% since the end of October and are approaching $60 a barrel for the first time since Covid-19 began to erode oil demand in early 2020. Futures for West Texas Intermediate -- or WTI, the main grade of U.S. crude -- last week surpassed $55 a barrel for the first time in over a year.

The speed of the recovery has surprised some investors and analysts, given that coronavirus continues to curtail demand. It has juiced shares of companies including Exxon Mobil Corp. and ConocoPhillips after a troubled 2020 for oil-and-gas producers, making energy stocks the best performers on the S&P 500 this year.

"The market definitely has some momentum," said John Kilduff, partner at Again Capital LLC, a hedge fund that invests in energy derivatives. "WTI is going to be targeting $60, too."

Oil is rising against a mixed economic backdrop, with data published Friday suggesting that the labor market faces a long road to recovery. But the stock market continues to power higher, in part because investors expect a new dose of fiscal stimulus and vaccines to goose growth.

American drivers are already paying more thanks to the rally in crude. Nationally, gasoline prices have climbed to an average of $2.46 a gallon from $2.12 at the start of November, according to GasBuddy, which tracks retail fuel prices.

Gasoline prices are likely to keep climbing. Crude's recent advance will take two to four weeks to translate into higher prices at the pump, said Patrick De Haan, GasBuddy's head of petroleum analysis, though he doesn't expect to see gasoline hit $3 a gallon on average any time soon.

Behind oil's rally: Huge stockpiles that accumulated in the early stages of the pandemic have winnowed down faster than many people expected. Traders say that could pave the way for further price gains if demand, which has already recovered in China and India, picks up in developed economies.

The fall in inventories is largely down to efforts by the Organization of the Petroleum Exporting Countries and its allies, led by Russia, to restrain production. Since agreeing to the cuts at the peak of the crisis in energy markets in April, producers have held back a cumulative 2.1 billion barrels of oil, OPEC said last week.

U.S. companies have also helped to prevent production from swamping demand. Global appetite for oil remains below pre-pandemic levels despite a pickup in consumption of gasoline, naphtha and fuel oil, which is used to heat homes and power ships.

American producers are pumping 17% less crude than they did on the eve of the pandemic, according to the Energy Information Administration.

All this has pulled the amount of crude oil and petroleum products stored around the world down by about 5% since its peak in 2020, according to Morgan Stanley analyst Martijn Rats.

There is no shortage of oil, but one sign the market is tightening stems from the relationship between current and future prices. Spot prices have climbed to a premium over prices for crude to be delivered down the line, showing that traders are willing to pay more for immediate access to oil.

On Friday, WTI contracts for oil that will be delivered next month cost $5.16 more per barrel than contracts for crude that will change hands in March 2022. That is the biggest premium for front-month futures since the start of the pandemic and contrasts with a historically large discount last April, when a glut of oil pushed WTI prices below zero.

"It is a bullish indicator," said Scott Shelton, an energy analyst and broker at United ICAP. "I don't think there's any question about that."

Analysts say this dynamic -- known as backwardation -- has been exaggerated by a slowdown in purchases of long-dated energy contracts by airlines and other companies that buy them to hedge fuel prices.

Still, some investors say the condition shows the rally has further to run. It gives traders an incentive to take oil out of storage, because they earn more from selling it straight away. That in turn would bolster prices by whittling down supplies. Lower forward prices also make it harder for producers to lock in profits for barrels they will sell in the future, encouraging them to keep oil in the ground.

Backwardation could encourage more money managers to bet on crude, said Mark Hume, co-manager of BlackRock's BGF World Energy fund. When spot barrels of oil fetch a premium, funds earn a profit when futures approach expiration and they flip their position forward into cheaper later-dated contracts.

[csmwssk12hu] 08/2/2021 00:25

Combined entity 250,000 barrels of oil per day, $25 higher than merger announced, $6m per day more, in excess of $2bn a year more, hedge at that and see what market cap and share price we get, dam sight more than 21p imho dyor

[csmwssk12hu] 08/2/2021 00:12

Marky I’ve filtered them think one of them has dived too far in the deep blue ocean and has lost his guide line and got the bends

[csmwssk12hu] 08/2/2021 00:07

“Oil companies, for the first time in a long time, are likely to make a big comeback,” he said. “We have all the ingredients for an extraordinary bull market in oil for the next few years.

[csmwssk12hu] 08/2/2021 00:06

Some banks are forecasting the United States, which leads with the number of COVID-19 cases, to reach herd immunity by July, which would greatly stimulate oil demand, said Jean-Louis Le Mee, head of London-based hedge fund Westbeck Capital Management, which is long a mix of oil futures and equities.

[csmwssk12hu] 08/2/2021 00:05

“We are going to see some incredible oil prices over the next couple of years, incredibly hot,” said Tawil.

[csmwssk12hu] 08/2/2021 00:04

Tawil predicted prices of $70 to $80 a barrel for Brent by the end of 2021 and is investing long independent oil and gas producers.

[csmwssk12hu] 08/2/2021 00:04

By the summer, the vaccine should be widely provided and just in time for summer travel and I think things are going to go gangbusters,” said David D. Tawil, co-founder at New York-based event-driven hedge fund, Maglan Capital, and interim CEO of Centaurus Energy.

[andypop1] 08/2/2021 00:03

Virtue,
Did you take advantage of the volatility or just hold like the clown marky?
Be careful how you answer, lol.
Good night boys, I'll catch you tomorrow evening with a gum shield in and maybe a retro post or two!
Good luck.

[csmwssk12hu] 08/2/2021 00:03

Global oil benchmark Brent has jumped 59% since early November when news of successful vaccines emerged, after COVID-19 travel curbs and lockdowns last year hammered fuel demand and collapsed oil prices. Last week it hit pre-pandemic levels close to $60 a barrel.

[csmwssk12hu] 08/2/2021 00:02

The view is a reversal for hedge funds, which shorted the oil sector in the lead-up to global shutdowns, landing energy focused hedge funds gains of 26.8% in 2020, according to data from eVestment. By virtue of their fast-moving strategies, hedge funds are quick to spot new trends.

[csmwssk12hu] 08/2/2021 00:02

Such limitations on supply would push prices to multi-year highs and keep them there for two years or more, several hedge funds said.

[markymar] 08/2/2021 00:02

He's no builder to devote so much of his life to deramping PMO....family time Andy....then you come on at night time and preach has she gone to sleep so get back to your obsession and preach and drink more than she knows...bit of a problem In between Andy your loosing your family with your obsession.....best advice maye make your family your obsession ..They grow so quickly

[csmwssk12hu] 08/2/2021 00:01

From cnbc
Hedge funds are turning bullish on oil once again, betting the pandemic and investors’ environmental focus has severely damaged companies’ ability to ramp up production.

[csmwssk12hu] 08/2/2021 00:01

$60 oil is upon us

[patience a virtue] 07/2/2021 23:39

Andy,
You must be stupid to think pmo share holders lose money, its volatility in the last few years has created many opportunities for people to make money.
You sound very bitter against pmo and its holders but pmo will not be in admin as you so wanted, the backstop is in and with the oil at $60, the future is looking very good.
As Mark said in his earlier post you do have a problem, a serious one.

[markymar] 07/2/2021 23:36

I hope so Mate be true to the board when lockdown over MATEMay be do it for Charity in a boxing ring as lost best mate to brain cancer so maybe PMO boys might help a good cause

[andypop1] 07/2/2021 23:20

Young marky,
If the lockdown ends I'll pop round for some jelly and ice-cream at your next birthday party!
Night mate.