While disappointing that the oil price shows no sign of stabilizing, the smart money seems to be on the price going back up in the medium to longer term. My own view is that the Saudis and OPEC will cut their output the next time they meet, my reasoning being that as the most prolific producers they are the biggest losers in terms of overall revenue. Even if they send some of the lower margin North American shale producers to the Wall, I can't see them biting the bullet for that long when they can exert some control over the price. In the meantime Senex unconventional gas potential should be seen as being exciting to a predator or farmin partner. I am awaiting with interest, whether Chevron takes up the option to continue to partner Beach in their unconventional program, as this would be a huge vote of confidence in the unconventional gas potential of the Cooper Basin.
TLU Price at posting:
0.5¢ Sentiment: None Disclosure: Not Held
SXY Price at posting:
32.5¢ Sentiment: Buy Disclosure: Held
