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[rangenoresources] 10/6/2019 07:50

Looks like the ego has nothing to say about Range and he has gagged his pet troll or his dribble pills are not working again

[rangenoresources] 10/6/2019 06:25

Love this gem. What is not to like?

Oil prices may have had an impressive rally this year – until last week – but the longer-term trend looks downbeat. “Deflationary forces are gathering momentum,” Morgan Stanley analysts wrote in a new report.

The most recent jump in prices through mid-May came largely as a result of geopolitical risk and supply outages. Rising tensions in the Middle East and disruptions in places like Venezuela and Iran are showing no signs of going away anytime soon. These geopolitical factors will keep some upward pressure on oil prices for the next few quarters.

However, in the background, there are several variables that could exert deflationary pressure on the oil market. Morgan Stanley has noted that U.S. shale is slowing, “but with 200 [billion] barrels of resource with breakevens in the $40-45/bbl range, there is an increasingly credible scenario that shale could grow >1 mb/d per year out to 2025.” Moreover, oil producers are turning to a variety of digital technologies, robotics and automation that could keep costs in check. That’s good for individual oil companies, the investment bank argues, but in the aggregate, it puts a lid on crude prices.

Morgan Stanley drew parallels to copper and aluminum markets. In the past, oil was like copper in that producing the next project became more and more expensive. Scarcity meant higher prices and the tendency for companies to venture into ever riskier frontiers. On the other hand, shale is more like aluminum, the bank says – the resource itself is abundant, so costs are more determined by the industrial process that comes after extraction. As a result, as technology improves, costs fall. Aluminum prices have steadily declined over the last century while copper has been more volatile and cyclical.
Related: Have Gasoline Prices Peaked For 2019?

Because of shale’s increasingly important role in the global market for crude oil, the entire oil market may begin to resemble what has occurred with aluminum. In other words, there is a cap on oil prices in the medium-term, Morgan Stanley argues. That leaves little room for OPEC+ to add production; the group may have to maintain its output curtailments for years to come.

Depressed prices mean that investment outside of North America could dwindle. That’s bad news for companies working outside of the U.S. and Canada and also negative for oilfield service companies. “For the majors and the E&Ps, their place on the cost curves would be more critical than ever,” Morgan Stanley warned. “Ongoing focus on cost and capital efficiency would remain a key priority.”

On top of this, as other governments try to compete for capital with North America, tax rates on the energy industry could fall, Morgan Stanley said. That also could act as yet another deflationary force.

[rangenoresources] 10/6/2019 06:21

What is not to like?

Pop goes the weasel.

How quickly things can change in the oil market. In less than two months, the oil outlook has swung from strongly bullish to decidedly bearish.

Only six weeks ago, a cross-section of analysts had forecast oil prices to remain buoyant for the remainder of the year courtesy of an expected OPEC squeeze and geopolitical turmoil in key supply locations. Some even predicted that an improving economy and Iranian sanctions could propel Brent to $100 per barrel in a matter of months (Celticheart07)

And, now some mea culpas are in order.

Fast forward to the present and oil prices have unexpectedly cratered: Since then, Brent is trading down around 13 percent to $62.33 per barrel; while the U.S. benchmark, West Texas Intermediate (WTI), has slumped 16.3 percent to $53.17 per barrel thanks to a confluence of unfavorable factors.

Oil markets have effectively slipped into bear territory, defined as a 20 percent fall below their April peak.

[rangenoresources] 10/6/2019 06:06

Still no news from Range re: Pre-School

WTI dropping like a stone.

The ego isn’t posting as has nothing to say about Range - even Malcy has given up

What is not to like?

[qantas] 08/6/2019 00:30

So true and they say never look back.

[robot ic1] 08/6/2019 00:10

A lot of women like a lot of Black

[rangenoresources] 07/6/2019 23:05

Poor old ego. He has nothing to say about Range

[skinwalker] 07/6/2019 22:14

What on earth do you mean celtic you old fish-filleter? Nothing to say!?
Never stopped you before!

[rangenoresources] 07/6/2019 18:38

As nothing happening with Range shall we talk about AminexDown 8% todayWhat is not to like?

[lewisyfawr] 07/6/2019 17:57

Ron. Your inane nonsense from 4am till midnight continues. Ham & eggs is not part of my daily regimen.

[rangenoresources] 07/6/2019 17:09

As nothing happening with Range shall we talk about AminexDown 8% todayWhat is not to like?

[robot ic1] 07/6/2019 13:29

Black gold hammering up,

RANGE WILL BE TRADING SHORTLY .

[lewisyfawr] 07/6/2019 12:34

WTI oil is up today at $53.32 as barrel, which is good for Range and they will like price a lot.

I do agree a bit with Ron that the rest of 2019 will not be great - global demand will make prices "dull". But it looks as if Range can budget forward on at least $50 (which, if it costs them $31 in production costs will give them a tidy surplus from each barrel of about $19 a barrel (just over 10p a litre?).

Let's hope they have completed review, will announce return to AIM and ASX today or next week, and hit the ground - RUNNING.

[lewisyfawr] 07/6/2019 12:22

There is nothing known about Range until we get news, Ron. Your inane nonsense from 4am till midnight continues. Meanwhile, we chat about politics, Trump, pre-school education in China, oil prices, weather, Tory leadership, Peterborough by election, black books, manufacturing expansion and contraction.

We don't agree always, but we do agree on a lot and I think it has been quite interesting debate at times. Lot better than simply taking p out of each other and ticking up daft posts all the time. What is that all about?