RE:RE:OPEC and IEA Oil Demand Views Are A World ApartDemand forecast not price forecast. Others set the price based on demand.
OPEC lowered slightly their oil price forecast below what was $100 but the rumor that they are considering uping production is a deliberate false narative. Because they are the glue that holds OPEC together OPEC is the glue that holds OPEC together?
SAGD is the only way forward. If oil prices continue to fall they fall below the point where convential oil recovery is not profitable and then only the low cost thermal oil producers will be making money and will pick off the struggling conventional oil producers. CJ has the revolving credit to sustain them until SAGD comes online and then they will be a low cost thermal oil producer capable of picking off conventional oil producer that didn't have the same foresight to invest in SAGD.
GLTY and all
VeritasVern wrote: OPEC lowered slightly their oil price forecast below what was $100 but the rumor that they are considering uping production is a deliberate false narative. Because they are the glue that holds OPEC together and if they raise production so does all the other OPEC producers. End result is less income for everyone despite higher output.
SAGD is a ways off before production and there is still developmental risks. If oil stays down CJ's revenues will also decline and they may have to dip into their revolving credit to sustain the div which would be looked at favourably. That suggest lower prices compared to where we are today and eventually they will may have to lower the div because at the current 6 cent/share a $5 stock price implies a 14.4% dividend. We need $75 oil or above and then everything falls into place.