Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Baytex Energy Corp T.BTE

Alternate Symbol(s):  BTE

Baytex Energy Corp. is a Canada-based energy company. The Company is engaged in the acquisition, development and production of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Eagle Ford in the United States. Its crude oil and natural gas operations are organized into three main operating areas: Light Oil USA (Eagle Ford), Light Oil Canada (Pembina Duvernay / Viking) and Heavy Oil Canada (Peace River / Peavine / Lloydminster). Its Eagle Ford assets are located in the core of the liquids-rich Eagle Ford shale in South Texas. The Eagle Ford shale covers approximately 269,000 gross acres of crude oil operations. Its Viking assets are located in the Dodsland area in southwest Saskatchewan and in the Esther area of southeastern Alberta. It also holds 100% working interest land position in the East Duvernay resource play in central Alberta.


TSX:BTE - Post by User

Bullboard Posts
Post by tvstockon Oct 28, 2015 10:14pm
116 Views
Post# 24237344

Probable reason for yesterday's oil price drop

Probable reason for yesterday's oil price drophttps://www.bloomberg.com/news/articles/2015-10-27/u-s-plans-to-sell-down-strategic-oil-reserve-to-raise-cash

Luckily sale will only starts 2018.  Additional sale  for $2 billion will only start 2017. And actually the Congrfess expect an average sale price of $88/bbl.


"China has already stockpiled 200 million barrels and will add nearly 20 million more this year. Beijing plans to increase the size of its reserve to 500 million by 2020. Germany, Japan, South Korea, France, Spain, Italy and other big importers also have their own strategic oil reserves. "

Also they expect to proceeds of 5 billion . Divided by 58 billion bbls that means an average sale price above $85 /bb.   


https://oilprice.com/Energy/Crude-Oil/SPR-To-Be-Used-To-Raise-Cash-For-US-Gov.html



IMO the hedge fund guys must have already heard of  that, and they probably think the sale will go ahead immediately.    This explain the crazy drop of all oil stocks in the last 3 months, and may also explain why CPG cut its dividend while BTE suspend its dividend.  An immediate sale of 58 million bbls is a much much bigger issue than Iran.
Bullboard Posts