the right time

If Premier and PPP and friends have struck commercial oil at Red Emperor then the timing could be very good.

This week's BNZ Weekly Overview (June 18) raises the possibility of higher oil prices and the implications for businesses with their car fleets.

However the suggestions that they are picking up on are of interest for PPP holders since it indicates higher poo and greater profits fo PPP.

"The global economy is currently undergoing its worst downturn since the Second World
War. Yet oil prices are at US70 a barrel and at their low point in February only briefly got to US$35 before
shooting back up.
(There is a graph here that I cannot copy)
Oil prices have risen in spite of consumption being down from a year ago partly because of anticipation
that demand will start strengthening again before the end of the year, partly because investors have
shifted back into the markets, and partly because of expectations that soon we will once again be asking
ourselves where the oil will come from to feed China and other fast developing countries. There are some
forecasters picking the price will be back at US$150 a barrel again by the end of 2010."

So Red Emperor oil to help supply China ? Well we will happily sell at US$100 plus per barrel to help supply anybody.
Certainly at that price the incentive to drill again in the area will be pretty strong if Red Emperor proves to be commercial