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clock Created with Sketch. 16/01/16
14:22
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Originally posted by Pbnewby
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Our dollar down to 68.3c its finally moving in the right direction for our oilers - we'll get protected by the exchange rate though a lot of Santos debt is in USD but luckily they got rid of a chunk of it - US shalers have no such protection and as could be seen by that WSJ article many get paid below the nymex price by $3 and the Canadians get $13 less and we also know the US shalers need around $60 a barrel just to break even.
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If Oil Price stays low(highly unlikely) most shale gas operators will go down. Also low oil price means World Oil Demand will Jump. For Example India's Oil Import (Volume Term) has surged around 16% in 2015. China's & Indonesia demand still growing. Also Saudi oil production in now totally unprofitable. Plus last year Hajj Visitors saw around 2 million drop, this year may will be see significant drop due to ME Turmoil. All this mean Saudi & other OPEC members will be forced by OPEC to cut production.
(20min delay)