6 Burst results for "Mr Simon Watkins"

"mr simon watkins" Discussed on World Oil's Daily Brief

World Oil's Daily Brief

15:23 min | 1 year ago

"mr simon watkins" Discussed on World Oil's Daily Brief

"They meeting all of viral video conference on June. The chance to discuss how the deals going And they may then cut it to two ten to two eight. Well I suppose in their defense would expect such a thing. We written in there that way this very much. A temporal sort of a project working on and maybe that's g twenty is getting together tomorrow to to go into politics. Cameron bigly definitely you. You're very diplomatic person. That's one way of putting it. Yes almost twenty years. That's about saying you were very very well. Bought up young boy. I'm sure mother be very proud now. But back to these as well. These baseline levels. Incidentally they're crazy is of course because the Russia's GonNa have reduction applied From the baseline level of around eleven million barrels. A day which is exactly I mean Russia vast exactly what their previous essentially that baseline level wars for the previous Carson. Nothing's changed at all and they'll still produce eleven in half anyway absolutely no difference whatsoever. Saudi Arabia you know what they do of course normally when they're setting bent Ah benchmark Bait Baseline level is that Saudi Arabia ramps up production so that can just cut back without actually doing anything. It's base it's production baseline seriously. It's eleven million barrels a day. Well as I pointed out lawful which seems to escape the nose. Most people do seem to regard. Saudi is an oil powerhouse which it is to a degree. We're nowhere near what he thinks is nowhere nowhere near what anybody else. It is is the average amount per day. The Saudi Arabia has produced every day on average since one thousand nine hundred. Seventy three to the beginning of this year is eight point. One five million barrels. It's nowhere near so the point is he's production by slice of nonsense will they? Weren't they amusing getting to the eleven number by counting dumping there Yeah Yeah Yeah. Yeah no way your guy without interrupting. Yeah no infantry. Surprise really haven't going nuts destroyed factored in there destroy. How smart I am well. We're not that snow ridiculous so that so that's that's nonsense as well. Basically they're just going to. This is when I say this is if you take all of this nonsense right. So we've got a a a theoretical figure of ten million barrels a day. If you take this out even vesa site stick with the tank because that's what it is currently if you take out if you check out all this nonsense which you know. Unrealistic never seen production levels the baselines. Are you really and what they were gonNA call anyway because of the technical factors you'll probably looking really six or seven million barrel per day cards at most because it's not none of it's true if there's no point in saying I'm GonNa cut from twelve to ten when you've never never had twelve anyway. You can't count as part of a cost because you've never done it. It's a bit like when women say I'm going to save you. A thousand pounds stalling you go. Oh that's good yes. This dress is on sale for five hundred dollars. That saved you sa- say because it was on sale for thousand five hundred so I've saved thousands. Go no you really haven't. I'm not gonNA go anywhere near the out false false. It's IT'S NOT REAL. You can't say cart is from something that you've never or you've done for like ten minutes you you know for once in your life you can't say that's the that's the level and we're gonNA cut from that we're GONNA cut two million from that because it's not a card. Yeah Yeah that's what I say. Absolutely don't look at it is. It's all just storytime it is that Simon why we've seen the oil price actually go down since since the the plan with announcing go down even further after they ever. Mexico said that they will go ahead and comply. Yeah always setting in. Is that what's going on? I mean there are two reasons technical and one's fundamental technical reasons as the CIA. He'd markets as always a There's a saying as you know by the rumor. Sell the facts. So the rumor wars they'd be caught So people buy that on that basis. Then there is a car so they sat on that prices but vast technical reasons sway mortgage work. But the second reason fundamentally is people have you know people are not you know people are not idiots in this in this business and they look at the details and they look at the details in you know infinitesimal. Infinitesimal Gile If you will and you people I've come to the conclusion right lay in my opinion that it's it's just full of holes and it's It's dead on arrival really technically speaking as well Won't I mean I mean the day was basically done the the daily five outline the dawn? There's not really going to be anything tonight as far as I can see. So you're looking at this level of inverted commas carts and so really. There is no reason. Why brench shouldn't go down too twenty again if not lower and why WTI you know. That's a huge premium with them. I went between brands and Wti like the old days seven or eight dollars. But I mean really speaking. You know. There's no reason why. Wti shouldn't track down towards the fifteen told about every if not lower before demand really starts to kick in. But you've got to bear in mind what I was saying about Chinese demand coming in. That's true Asian demand will lag slightly. But we'll also. Roy is but the point is is concomitant with a massive overhaul of stock in in storage. Yeah so you see what I'm saying is you've got weeks and weeks of storage now. Well many many weeks facts even before. So that's going to be Taken out of the system before you know before any of these cuts can be whatever comas cards could be factored in. That's the incredible thing in all. This is even a period short as a week. Means is the meaning so plastic now it. Could you know only matter of weeks until the you know? Demand goes back up from. We're awful lockdown. Oh let's one meeting of a week conversely you know we've only got two weeks left until there's no place left to put oil. Yeah I mean basically if the only I mean really speaking as a world stop producing oil today and you you would probably only see Brent go up to fifty in about a September assuming production from now from the Second. Yeah because so much if I go ahead no I was just going to say. It's amazing because you know as you were talking about by the rumor and sell the fact. We're all looking forward to this. This big announcement came and my goodness provide website. Traffic didn't go through the roof. But that was like okay but there. But there's really nothing else after this you know. There's nothing there no more no more buttons to press. I think is kind of what what what my sinking feeling is. Yeah I may not absolutely true. The only thing they can do I mean bear in mind the only bought. And they're actually considering pressing as I mentioned is reducing the cards in July. So but that's a great idea. Yeah the only thing they could possibly do. Let me. You've got to bear in mind that the the the really we're back to where we were in terms of geopolitics rushes absolutely fine the US we find the US has got a viable me. Whatever gives about share. It's nimble it can turn around quickly you know the best players and You know they'll be fine The battle you Saudi. Because what is it? I mean there. Virtually they're like Forty fifty over fifty dollars per barrel away from what they need to be on. Barra on that budget break-even price and not just that they also look while the problem. I mean the oil market now's the NBA hasn't a clue so he hasn't actually lost any further ground. More stupid than people thought he wants to school so that is not of France. The boy is that you know. He has damaged even further. Always looking quite tenuous with the various things that Saudis up toward Yemen Kashogi kidnapping for Lebanese Prime Minister. During aim to resign. And all the rest of it. So you know hanging up your Your own relatives and arresting people arrested at home but you know not just out but they went after he won his only real ally You know which was The US and has been since the agreement is in nineteen forty five. Yeah you know. And he's managed bewilderingly. People would think the impossible he's managed to actually make. Russia look quite benevolent because but Russia agreed they said yeah okay. We're big hostage will will as well obviously no. Yeah so they might. Well be trump of the deal under the table might well be be relax on on sanctions against Russia. You know maybe Rosneft will be allowed to reengage more fully in Venezuela and maybe Nordstrom to won't be quite as a talk sake for America is If in fact it really is. That's probably the only thing that would interest either. Those parties is is Nord Stream because I know that They did a pretty good end around on trump done Venezuela by just nationalizing whose businesses are getting sanctioned Very funny was that game over there as well where you try and follow the queen that with it doesn't it doesn't sound familiar. Well you've got three cops on a table three three cups and you've got a you've got one. She's the Queen Colder Mo Monty. Something Not Free Card Monty. Try to follow where you you try to follow where the Queen is yes. Yes that's like trying to follow. Ross trading I do want to point this out for our listeners. When last we spoke you you really get into some excellent detail on the history of the United States relationship with Saudi Arabia. To go over that again. I'm going to know. Oh no iota on tourism letting. Everybody know that you did the do that. I'm going to put in today's show. Notes a link to that show because if that is of interest to you than that other program will be exceptionally instructive tells you everything. I mean the full basis of of the of why the relationship between the US and Saudi is as is and it also explains fully why the US does expect Saudi Arabia to carves. I'm properly carters well whilst losing money And allowing US show producers to make money from higher prices. It's basically it's a tariff on the relationship to keep the house of Saudi empower. That's what it is right. So I'm sure that after listening to to you and I for forty four minutes and seventeen seconds at this point everyone chomping at the bit to go and listen to us. Another forty more so we'll But the full serialized in the in the offering. I'm show or remind me about your new book Yes thank you. It's Actually that's a good point because there's lots of Lots of stuff that we've preempted and Sort of pre analyzed a it's called an insider's guide to trade in the oil markets. that's available on Amazon Kobo and ATF as published by UVF and valuable in that all normal usual places appeals aspects up literally tabs on on the show for that as well and they can check that out so with that Mr Simon Watkins on this. Good Friday. You're a good sport for taking my call in the late evening. Like this so Thank you Sir for being on the show a real pleasure and so we've always a pleasure. I'm sure we'll speak again soon greg. Thank Cameron thank you all right so we just got done. Hearing from Mr Simon Watkins over in the United Kingdom always a real pleasure to have him on the show and I had hoped to have Our editor in chief cred Abraham Join US on a three party call but technology being what it is in the days of Corona virus. We just couldn't make it happen so I have Mr Abraham with us right now to talk to us about where the oil prices ended for the week. And kind of what we can expect coming up here domestically in the face of all this. So Mr Abraham thanks for being with us well thank you Cameron and Finally were at the end of another tumultuous week I couldn't be happier to see the end of the week. Quite frankly with everything that's gone on it all of this whole thing with this OPEC plus deal. It seems to me to be so tenuous and it doesn't seem to amount to enough To put it in shorthand here and I think that the market yesterday reacted accordingly. You know at one point. The price was up. Oh goodness about three dollars. A barrel all the way up to twenty eight something..

US Saudi Arabia Russia Saudi Mr Simon Watkins Cameron bigly Wti Venezuela Mr Abraham CIA Carson OPEC Yemen Mexico United Kingdom
"mr simon watkins" Discussed on World Oil's Daily Brief

World Oil's Daily Brief

12:58 min | 1 year ago

"mr simon watkins" Discussed on World Oil's Daily Brief

"And as I've been promising all week we are joined by Mr Simon. Watkins analysts investor and author in the United Kingdom and. I'm really excited to have him on the show today to talk about all of the activities that we have seen in the past twenty four hours eight minutes past twenty minutes or so so Mr Watkins. Thanks for joining shorter High Cameron. Thanks for having me back through with a with a play yet I mean things are moving apace. Certainly are in fact. I think it was going to be a different very different conversation just up until about half an hour ago we had learned yesterday. Obviously that Russia and Saudi Arabia decided to bear the hatchet as we see over here Well Russia certainly not see I in some policy Saudi Arabia's national me that's show as historically speaking I mean the fact is if we look at this in broad terms to kick off with and then we can Let me dissect. It's you know we have. We had a situation. That's just that's just go back to where we were in December when we were looking at pre the oil price war so we were looking at a fairly balanced ish markets We were coming up to you. Know and you Opec process agreement. Virtually being ready go Which will keep our balanced. The balanced pricewise was essentially between fifty five zero doors. Power of brands and seventy seven zero Dollars per barrel of Brent with the emphasis really bring on the sort of fifty five to sixty five area and the emphasis even within not being on the low side so that was where we were then obviously Saudi Arabia to drown to Russia. And and essentially we're trying to hijack loam into doing bigger carbs fine have been privately agree between Saudi and Russia and Russia which is not lean does not being threatened by anybody very well at least of all the Saudis for whom I have complete contempt and So they turn around and say well no you do whatever you like and thinking I mean. Presumably dreaming for the Saudis. Wouldn't be enough to do exactly what failed law threatening twenty four tate sixty in but behold. That's exactly what they did forgetting. Seemingly that they have a Brent break even price the Saudis issues of eighty dollars a barrel whereas Russia has forty dollars a barrel Budget break even price and your show producers could manage forty as well for the most part the good produces so that is where we were. Just why we all now? The that was predicated that Barnes was predicated essentially on the global demand of around a hundred million dollars a day as we know which was tight what was coming onto the market was cheating going on with the the OPEC plus steel lost. Aw as but that's that was where the Balance Wall so against that we've had corona virus reduce Demand globally boy around will the estimates are anywhere between twenty five and thirty five percent so obviously even the Saudis were twenty five million barrels a day to thirty five many hours but in response they've caught Tan between them which is ten percent. I'm saying this for the Saudis benefit Broadway camera. No no no you can work this out but ten million dollars ten percents all of the bond as walls and the demand has gone down thirty percent so even if as well as expected. Let's say The other Tangential produces coming in. Add another five million barrels. Perhaps at some point to the carts then you're still looking at fifteen percents The problem is without i. It's nowhere near say to me point of first percent. So it's nowhere near the answers you know. I thought I was GONNA say and also without cheating normally goes on with it and the fact that these much more long drawn out process in the fact that the you know the starting points the baseline of very high. They always all when these things are done and things got more housing than a good Swiss cheese. I'm wondering where that Ten million barrels a day figure came up. Because I know that you know it does from my observation days before the started. Ihs market put out a research report as well you know based upon what we see with you know demand decline in the US particular The market would need to shed ten million barrels a day in production in order to achieve some sort of stability and that number came out and the low behold the next day trump tweeted ten million barrels a day. Did he plugs into that number? Get plucked out of the air to be a fascinating tale behind that specific figure. And I'm sure you're gonNa tell me what it is. Well I mean I can't really I can't definitively throw light on that. I mean I can only go along in the same river Road is you. Which is there was this figure. But this figure this is from you see. I can only shoot the this figure of Ten to fifteen percent right cart would be good enough to rebalance the market but the point is that this figure was taken from the very beginning of the of the onset of the spread of Corona virus outside China. This was the figure that was in January. This was the figure this was the figure. Because if you remember the original figure the the the the Saudis. Let's go back to the the the way we were the previous. Opec plus call. That was going to be just based this was if you remember the beginning of January because they would choose to to announce a new one so at that point remember. The beginning of January corona virus had only affected China so not a certain areas of China and was beginning to spread into other areas of Asia particularly South Korea of course So it was extremely limited that point and at that point. Saudi was saying well look. Let's Josh cards you know. Say a million barrels per day. Maybe even one point five now. This was before any of this really. The Corona virus really saw it to get to gain momentum and so within not first month of January of this year when it was beginning to spread but nobody had any real consecutive of how contagious it would be on the fake walls. Well hang on. We are losing this amount of armed throw principally from Jibril's s some some key Asian refiners so actually ten to fifteen million ten to fifteen percent should be the toll that was January's figure so I can only assume you that this is the figure that people who've been using because as we all know Anybody who knows anything about what's wrong figure now as well as I say. Anywhere between twenty five thirty five million barrels per day bright now depending on the absent flows market supply and demand so meet point thirty so I my only possible guests on this and that is a gas or just drudge. Now is that it's it's a hangover figure from from late January Because he's not real as you not with nowhere near true that's been the most fascinating thing but all of this and we'll get into a later. I'm sure but you know. Just throwing around of production figures and commitments. What am I? Don't know what the American education system is. One of those educate is one of those in the British education system. When you about twelve and agenda here gender afford US clever. They sought to throw mice questions. I you know I if a train his going at twenty five miles an hour. I'm fifty five passengers on board. It stops altering them. Three passengers get off to own. And then it goes. How far is it going but you know I have no idea? It's really just so many. There's so many variables all of this and this literally. I mean the best. They are guesstimates to degree. When you get to try and precisely now dow but a fat estimates Of the production of the DEMAIM DECLINE. I would say is thirty million by digest based on propriety stuff that I've had to look at and Refinery runs and locking and Lockdowns CHEFS INS. And and all the rest. I think that's a fair fair but even if you even the most moderate of estimates he's twenty five and certainly not Tan. I mean as attentive days. Now any other will. We're racing towards a higher. Figure ourselves here in the states. I know that over the Permian Basin and the Shielfield. Sister having to lay down rigs and shut in production. Because there's no place to put the stuff anymore Even the pipelines are full so What through rates. That's another thing I mean. This is a very good point. You raise which is the even after You know it's very well saying that You know you're GONNA Cup. You know you. You're going to cut production and so on but a lot of his production actually is just GonNa be anyway how it is already being caught by into the fight going. No there's nowhere to go. If the oil has nowhere to go I mean the the. Us is pretty much full. China's full all of the Begum the SPO's they will they will full and Floating storage is nearing capacity the the CC rights or shipping rights through the roof. So you know what I'm trying to say is there is a dividing line between what you're cutting buy into wanting to affect the the demand supply matrix in fact the prize but also as it there's an actual Results of Of just you not being able to send you do that. Well and I think that that is what is causing some consternation. Is that over to round off my point. So it's not real. It's not a real production carthy. It's just it's just a vagary of supply and demand. There is some real action in the cart in this. But it's nowhere near what some you know. What the diminution into Monday's saw you you're gonNA say anywhere not real. It's not real and it is interesting to see how opinions vary on what that means because I know that The Saudis and the Russians are a bit irritated. That trump seems to think that he can just rely on these market factors in that associated production decline to count for Proactive production declines on. Their part is a very good way of putting on because and they're not and they're not satisfied that obviously and understandably so but there's another factor here in the US too where A number of typically the smaller Shale layers and smaller producers are interested in a probation scheme whereby they artificially or you know proactively limit the amount of production. That happens in some of these places so that you know we would indeed have some regulated decline in production and the you know there are two different camps on this players are for it and the bigger companies are dead set against it which is which is Bruce up some interesting conflict over here but it is interesting not so. That's a very interesting point..

Russia Saudi Arabia China OPEC US Tan Mr Watkins Mr Simon Watkins United Kingdom Brent Opec Saudi Barnes Asia Lockdowns CHEFS INS Proactive Permian Basin Jibril
"mr simon watkins" Discussed on World Oil's Daily Brief

World Oil's Daily Brief

09:44 min | 1 year ago

"mr simon watkins" Discussed on World Oil's Daily Brief

"And that's again going back to something we've touched on with the current Current Administration over there. Yeah you gotTa really wonder about the decision-making making coming out of the DEA. We at this point It does not seem to be logical but hey is Washington DC. We have another related item. That gets into decision making And that is this whole thing. As you rightly pointed out just literally blew up before we started this podcast. And that's the situation with the Railroad Commission in Texas and Occidental Petroleum. And maybe want to give a little background on that. It was a very brief little piece that I saw. But Apparently Occidental sent a letter to the Texas Railroad Commission saying that they were opposed to any sort of production curtailment initiatives. Because doing such a thing would be quote shortsighted. Well all I can say to this first of all the way things are going with that meeting tomorrow. Were not likely to get a good outcome. We're not likely to get a good solid agreement. So that's going to depress the price all over again below the already low level. It's at secondly the other problem we've got is we've got a bunch of independent producers that Can't wait for you know for the price to come up by itself somehow magically through the so-called free market so it is incumbent upon the state to do something to lower production to help get the price up to help preserve a lot of this infrastructure. That's been built up throughout the state. Apparently if you're over at Occidental thinking as well okay so what who cares about the small independence. Apparently that's thank you. Because what else can you conclude but this is completely faulty logic. And you've got all the service supply companies that are dependent upon the the operators. And if you lose too. Many operators prices too low. A lot of these other companies are going to go out of business and it makes no sense to me to have all this infrastructure of fall apart. Because somebody was being stupid. You know I'm going to say this I'll probably get some more blowback for this too but there's a lot of frustration with certain people lately in industry who aren't thinking very clearly and you gotta wonder what's going on over at Occidental now that having been said these foods overdose not got the best track record of late in terms of decision making and they've got their own financial problems and I would suggest to them that they go take care of their own knitting before they tell everybody else what to do so. That's a really good point. You know it's easy to say well. We don't want the government to intervene on behalf of these companies to help them survive was like well. So you'd rather have the government pay their employees unemployment benefits and have them out on the streets. Would that be a better use of their reef resources? Because that's what we're getting to. Well that's exactly right I am. I'm amazed and Deng founded by this lack of common sense. It seems to permeate through certain corners of this industry right now in certainly through the federal administration as well but at least we expected out of Washington. We don't expect it out of our own industry. Yeah let's see. We have one of the thing to talk about. And that is We did put up a special editorial on the world oil website late yesterday. And that's continuing to run and will run for a number of days and maybe like a little background on that yet. We posted an editorial on the website yesterday evening that really kind of stated the magazine's position and our position on what's happening with the efforts of API the American Petroleum Institute to push some of these initiatives in Washington. And you really tried to kind of point out that the API represent certain parties but it doesn't represent every party. There may be some confusion or misunderstanding that when API speaks they speak for the entire industry. And I don't think that's really really it's fact and like you said we had that out and we got some Some interesting response from it today but. I think that it's something that needs to be clarified. Well that's right now. I'll talk about a little bit of the action and go back to what was actually said in the editorial We have received reaction from pioneer natural resources today Apparently they're in complete agreement with a what we said in the editorial so much so that they posted a link on their own and was their company. Website are linked in page. I wasn't clear on that the Their presidency Yo wrote a statement basically saying that he agreed wholeheartedly with the state with aditorial and felt that API was working against the interests of smaller producers and put his name on it and posted on Lincoln for all to see so it was a pretty Pretty strong statement that he made that was that was that was that was quite stop at That was Scott. Sheffield who did that and We appreciate Scott doing that. Of course Pioneer and Parsley Were the two companies that had communicated with Railroad Commission to the White House about the situation here in Texas and throughout the the industry of the US and trying to remind them that yes API does not speak for everyone so back to the content of the editorial we went through and kind of reviewed where the industry is now in terms of the corona virus. Impact the impact of the what we call predatory production cuts by Russia and Saudi Arabia. And the fact that the US has a right to defend itself particularly under aspects of the trade expansion act of nineteen sixty two that for a little legislative research that being the case. We also talked about talent. We had done this Survey three weeks ago of our. Us readership at the readership was overwhelmingly in favor of the trump administration doing something of significant nature. And then when we asked well what would you like to do? We had over half. It said they like some kind of Imported oil tariff duty-fee. Whatever you WANNA call it and then we pointed out that there is a stubborn minority in this industry of twenty five to thirty percent. Roughly who don't want anybody to touch the free market now again. We will point out. There is no free market in oil but they think so and so these folks don't want anybody to touch anything. Well that's not going to work because we're in a situation that is unprecedented. This is worse than a back half the nineteen eighties and something has to be done so we pointed out the fact that it seems to us that. Api in particular is working a little too hard a little to overtime at seeming to try to stop out discussion of any remedies. The trump could employ against the Saudis and the Russians at this point in the oil market. And we just think that's wrong you know. Let us be clear. We think that Has Its right to state his opinion. Have we don't think it has? It's a right to preemptively tried to Strike out some of this discussion. And furthermore to go around and act as if they represent the entire industry that is not true and we have the the data to show that. It's not true and the problem. Is the media picked up on this? Api speaks for everybody. So that's a problem. And that's why we felt the need to put this editorial out in state the case accurately and so be it. Yeah yeah that is the real catches that when the API speaks and maybe it's not the media's role to understand completely nuances of how our industry works but yeah they don't make any bones about going to correct any misconceptions about who they represent. They're perfectly happy with people believing what they WANNA believe. So it's going to be interesting to see if other companies stand up in start to be counted because we know that there's quite a bit of sentiment out there. that's completely countered what? Api is is telling folks right. Now will I guess we're GONNA hear a lot of opinions voices being counted between the OPEC plus meeting tomorrow? And I guess that will bleed into a g twenty meeting shortly thereafter and then the continuing saga of what the. Us is going to do in response. So we'll be keeping a very close eye on all of that Kurt. I think that we're GONNA have a lot to talk about on Friday when we get to see. Hopefully something come out of this all with With our front our counterparts overseas and all the other parties. That's right we have a special guest coming up on Friday and I certainly look forward to His inclusion and We'll see what happens over the next couple of days as right. That's right. Yep Mr Simon. Watkins excited to have him on. Thanks for reminding me about that so with that I think will Try and wrap it here and say Thanks for listening. Today everyone Thank you Kurt for beyond the show and we'll look forward to getting all caught up again on Friday..

Washington Occidental US Occidental Petroleum Railroad Commission Texas Texas Railroad Commission Current Administration Kurt DEA Sheffield American Petroleum Institute Deng OPEC Mr Simon Watkins Scott
"mr simon watkins" Discussed on World Oil's Daily Brief

World Oil's Daily Brief

15:30 min | 1 year ago

"mr simon watkins" Discussed on World Oil's Daily Brief

"Funny thing about that is why. That price was down noticeably. Almost all the oil companies stocks were up today. So you've got on one hand. The oil price going down because people globally don't see enough movement out of OPEC or OPEC plus but yet on the other hand. Some stocks are up because there's a feeling here in the US. The trump might do something of substance to influence the market. So you've got that hedging the other way. I think that something else that made the price move today was a concern over storage capacity. I think that People are starting to realize that storage capacity is indeed a real issue and they're starting to see indicators that we are going to be straight up out of space here in the very near future in the US and so. I think that was one of the prime movers for today's Decline as well. Well Yeah and that brings up another related fact and that is you know. People talked a lot about They're being extra room in the Strategic Petroleum Reserve. But it's not as much as people think the last numbers I've now seen The SP are when it's full is authorized to hold seven hundred thirteen point five. I think that's another million barrels now right now. It's at about six hundred thirty five or little over that. So you've got room for about another seventy seven seventy eight million barrels but that's only about twelve percent of the ESPN capacity. You had some people running around here as you remember in the last week or two saying. Oh goodness gracious. You know. We've got all this room in the SP are we can put all this oil in there. It's not that much. And even now even after the you know the requirement to fund that sp our purchase of oil was stripped out of the relief. Bill by Nancy Pelosi even after that the only you know they're still talking about well. Maybe we can lease the space to some of the oil companies to store some of their overage but again we're not talking that much and there's also the awkward fact that the light sweet crude produced in the US is not what's typically stored in the S P R and so. I'm sure there's probably some sort of legal issues that would bump up against that as well. Yeah that's a very good point. You know because you still got light crude flowing out of the country and then being exchanged for heavy crude coming back in that can be running some refineries that are geared for the heavy crude. So it's it's very difficult it's very intertwined and there's no simple solution to anything So interestingly the stock market because not only the oil companies were up today but there are some hopeful signs on a corona virus fronts so the stock market was up a whopping sixteen hundred twenty seven points. So it's at a bats. Twenty two thousand six eighty so it has made up anything that it lost last week. Which is just remarkable. Remarkable one day and poof. There we go some other things to talk about. You alerted me to Some of the countries that are talking about cooperating production cuts yes. Sounds like those becoming pretty popular notion amongst all of the major and major minor producers. It looks like people recognize that if we're going to do this they have a seat at the table. Well that's right. Norway has come out and said that they would be interested in participating in an uppercut if there was a broad international agreement to cut supply and we should note that nothing like that has been done out of Norway since two thousand and two. So you're talking about nearly eighteen years ago now That that happened. So that's very very interesting. The key is how much would they be willing to cut? And I don't know. Do we see a figure from on that? I don't think so. I think they're just saying they're ready to discuss it. Which like you said in and of itself is notable absolutely then to the north of us. Attorney Arthur I said say we've got Alberta saying that. They would join in any kind of OPEC plus cut and they're keeping an open mind on you. Know the amount of the cut and that has come from the provincial premier himself Jason Kenney A note to our listeners. Readers a provincial premiering candidates equivalent of a governor of a state in the US to sell were clear on what that means but You had Kenny. Come out and say that he thinks the plane certainly lies with Saudi Arabia and Russia. And he caught a predatory dumping and said that something he's be done about it and they would potentially participate interesting to see what his remarks were in. Hell pointed his remarks were he might have a very important role. Coming into this. As one of the heavies. Well that's right and you know it's a funny thing to me because those have been listening to the podcast for awhile now. We'll remember. It wasn't too long ago. We were talking about the fact that Ryan Sitton to one railroad commissioner In Texas was lambasted by some people in the industry for even considering talking to OPEC and yet you've got the provincial premier of Alberta and reaction. There's totally different. They're all saying have added to it. You know there are feeling even more pain up there than The producers are down here in Texas. I think we all I think. That's that's also a good point and They've been feeling the pain even much more than we have ever since We had the first piece of the downturn back at the end of two thousand fourteen people think the US market has been in trouble They've really been in the soup but it's encouraging to see several countries saying they would like to perhaps participate in this because this is really. This is really a global problem. It's not You know it's not just the. Us is not just Canada. I mean this is a global problem for a number of countries that have significant upstream infrastructure. So we've got to hope that something comes to this but We'll see if the meaning comes off on Thursday. The Thursday meeting supposed to be the OPEC plus meeting which I guess we are calling OPEC plus plus that was originally scheduled for today and then you know in some of the discussions that have been coming out of the past couple of days The G twenty has started coming up as well so I think that hopefully the OPEC plus meeting will take place. This Thursday and then a broader G. Twenty discussion that set for a couple of weeks now but still in April may refiner codify. Some of the stuff that comes out of the OPEC plus but all those are still very much up for debate I know that Dan Brea. Our Energy Secretary has been in contact with Abdulaziz Bin Salman in Saudi and they had some productive discussions about these meetings but nothing is yet set in stone. No that's right now. Speaking of various things you know trump had his meeting with the Oilmen Group Back on Friday and nobody's really said much about what was discussed in the meeting. We we've had a few general comments made but No real specifics Knowing the participants that were in the room I would think that there would have been opportunity for a disagreement on how to proceed. I would think that there would have been varying opinions on what to do. So we'll see if anything else comes out of that but interestingly enough one of the participants in that meeting the president of API Mike Summers was on CNN. This morning bright and early and It was very interesting that no sooner did his Did He make his appearance on CNN but then API by about midday at put out a transcript of his interview and they seem very eager for everybody to know what was said in that interview on CNN. And if you read through the transcript you realize a basically what he was saying was well we're API and we don't want anybody to really monkey with the market and the market will take care of everything and we don't want any kind of tariff on anything and the problem I've got with that is that's all well and good for the few companies. The large companies are API. But what about everybody else in the industry? I haven't seen anything. Have you a single mentioned by a one by anyone with API Talking about concern for independent producers concern for drilling contractors concern for the equipment has service companies or the engineering firms or the consultants Maybe I'm missing something I I don't think you are. Because that's not their constituency is that's near those aren't the people that pay their rather lavish membership fees so attracts pretty pretty closely with their members of what their policies would be. I think the thing that bothered me in reading through the transcript is the obviously are posturing themselves as being these spokespeople for the entire industry and we know all well and good that that's not true but the average person watching that particular same int- or anything else like it is going to have a different impression because API is out there trying to put out that impression put out that vision so I guess we're going to have to tackle that issue because that's not going to go away and I think it bothers my sense of fairness that you've got API out here who Is Not really allowing free debate. They're they're obviously trying to squash any other ideas of than what they want to proceed with. And that's not how this country works so think we're going to have to delve into that some more but we'll we'll keep the listeners We'll keep you apprised on that but one thing sure the API has been very good about making plenty of media appearances and press releases and just generally making themselves known so. I'm sure that will will have pretty good. Look at what. Their strategy is going forward. Well it's a little too well. orchestrated That's why I'm feeling bothered about it. speaking of our Secretary of energy. Good Mr Damn grew yet Is it just me? I like he could be doing a better job in articulating the true oil and gas situation in this country. Right now I saw him appear on. I guess it was Fox. News with the What was her all Judge Janine on her program. I guess I was a Saturday evening. And the man had a really good opportunity at that. Point to articulate the full situation for the industry and he did not do it he could have talked about how valuable the entire infrastructure is of the country. Not just larger companies. He could have talked about the potential for a lot of jobs to be lost. Tens upon tens of thousands. That was not done. I heard no mention of independent producers. I heard no mention of Equipment Service Companies. None of that and so an she doesn't know any better and she didn't ask the right questions and the whole thing. Was You know pretty much a waste of time? I did disturbed me greatly so I would like to see our secretary of energy. Do a better job of fully explaining the situation not just a piece of it occurred. Did you feel like he was just parroting the API line or was more just a lack lack of initiative on his part? Really tell that story I think a little of both cameron. It's you could. You could feel in here. Bits and pieces of the API line but at the same time he took absolutely no initiative to really fully explained the situation In comparison I think his predecessor Rick. Perry would have done a better job of of articulating the true plight that so many of our companies are in at the moment. Yeah yeah well. Obviously Rick Perry had a little more exposure that as a former governor of Texas. He has a more broad exposure to the oil and gas industry than Mr Brett does. His his background is much more. narrowly politically focused. I think I think you're right about that. We've got checked his background and his pretty much one of a lot of appointed positions over the years I can't say hey. The man has really gone out in worked in a regular job and what I mean by regular job is in a for profit company that has daily problems so I do get concerned that he perhaps doesn't have a full grasp of what's facing some of our industry companies at this point all right well Kurt. That's a quite a bit of grandma. Got To cover on a Monday here on the show. Thanks for being with us as always and I'm really looking forward to seeing what we get to talk about coming up this week in fact this week. Kurt. We'RE GOING TO HAVE MR SIMON. Watkins join us. He was on the show a couple of weeks ago. He's a A noted analyst trader and author based in the UK and he. And I had a great conversation about were Saudis and the Russians. Were thinking with the oil price war as of that time and so he's going to be on with us. Kurt talk about whatever transpires on Thursday with the OPEC plus meeting really excited to have him on and have a chance to talk to him. Because I think it's going to be very very instructive. I think so too. And it will be good to get a completely different angle on this situation from different Parts of the globe He'll certainly represent the European. Take on things of course There are probably different variations of that but it will be interesting to see what they're thinking over there absolutely so with that Kurt. Thanks for being on the show today and we'll see everyone.

OPEC US Secretary Kurt Texas Rick Perry Alberta Strategic Petroleum Reserve Nancy Pelosi Jason Kenney CNN Saudi Arabia Norway Canada Abdulaziz Bin Salman
"mr simon watkins" Discussed on World Oil's Daily Brief

World Oil's Daily Brief

03:03 min | 1 year ago

"mr simon watkins" Discussed on World Oil's Daily Brief

"And you know anything else. You mentioned equities because it is the Santa of geopolitical power for the producers which is why they nigh so much about how many reserves they have. And how much capacity they have. I do said the center of much of the world of the consumers as well because of the reasons I outlined cornerstone of of any global economy. That's in any way developed so for those two reasons. The oil market is factually more manipulated than any other market by key players. And I'm not talking here about Investment buying so funds or whatever until the actual governments themselves and they manipulated quite simply by making statements as we say all the time. Some of them are true. Some of them allies workout. When Schwann's way so I think my boat house without as well How to how to put it in a context of what has happened before. And what will happen again on the eye whether projects I mean. It was based on analysis. What would happen in the future? Not just as possible. What happened in the future and I did site well. This is exactly what's going to happen you benefit from it because of the resurrection of mentioned one of the things that having highly manipulated market. Is You tend to get if you know what you're doing you can see what's going to happen quite clearly much more clearly than you can. I in my opinion in other markets and also. I tend to the moves the big movies. I'm not talking in to die on talking. We you know we have two week. The big moves the trend really. You got big trends lasting a long time. If your position rides you make a lot of money actually during So so I also go into particular specific trading strategies how to do both trading strategies to do specifically with different boil prices and pricing structures but also tangential coronation. So you know the the obvious ones trade in Norway Norwegian Krone Company and Pace. I will the Canadian dollar. And what the what? The correlations are whether they're positive or negative. What circumstances you can ob- you know you can arbitrageur differences between the four x equities and the commodities and and so on and so forth so that's essentially what what that is about. You know that's it that's it so we've been speaking with independent oil analyst and author. Mr Simon Watkins most recently author of his new book. An insider's guide to trading the global oil market Watkins. Thank you very much on the show. Today I really enjoyed talking to him. Good to hear your insights and what to do this again soon. It's been a lot of fun. Well thank you very much driving me on camera and we the best best to trading and Yeah.

Mr Simon Watkins Norway Norwegian Krone Company Schwann analyst
"mr simon watkins" Discussed on World Oil's Daily Brief

World Oil's Daily Brief

01:31 min | 1 year ago

"mr simon watkins" Discussed on World Oil's Daily Brief

"Welcome to the daily brief the world. Oil podcast network daily review of market news emerging trends new technologies and the people who are advancing the oil and gas industry. Here's Cameron Wallace with your top news. Stories of the day since Russia walked out of OPEC plus discussions late last week. Industry has seen some incredible swings in oil prices driven by a Saudi and Russian production. War helped along by falling demand due to the corona virus. It's a lot to keep up with. Changes are happening fast today. On the daily brief I'm joined by independent oil analyst and author Mr Simon Watkins to share his expertise and give us a little color on. What's been happening in oil and gas over the past few days. Today's episode of the daily brief is brought to you in part by Siemens with the global population expected to rise nearly thirty percent by twenty fifty. The world is evolving rapidly and so are the challenges harmful emissions chief among them therefore the solutions must evolve rapidly if we are to meet society's ever-growing demand for clean energy Siemens partners with oil and gas customers to navigate the new normal delivering what matters most safety efficiency reliability sustainability and ultimately peace of mind. Today's upstream operators face unique challenges including remote locations space constraints and the high costs associated with non productive. Time Siemens has an extensive track record of helping operators improve performance and mitigate risk in offshore environments visit Siemens Dot com slash oil and gas to learn more about Siemens Engineering Services and technologies for platforms in vessels including F..