Africa Oil Corp. T.AOI

Poll

[Lonegaurdian19]

I am curious to know which side you'd take one our hedging position that will end in Q4


hedge now around $100 a barrell?

let it ride?

[toptiger]

well, they cant really lose from here, unless they do the opposite of what they have done recently, that is dont fwd sell (its not really a hedge) and oil plummets, which wont happen. Would be tempting to lock in $100 a barrel on maybe every other cargoe and let rest run, but only at a good price. oil is going no where, not only is opec near capacity, the refineries are really screwed, as a few

[Lonegaurdian19]

Two years ago I used to argue $60 was the equilibrium for oil producers and consumers. Today I'd say it's more like $80-90. This is the new level where input costs and profit margin negate demand destruction.  I would have no issue with them forward selling the rest of their cargos this year at $100. This would give clarity on debt mgmt and the possibility of returns to

[firstworld]

RU is selling their oil to markets with 7B pop at $75 bbl shipped. OPEC ME price is $85 or so. 7.5B pop markets are averaging $90bbl landed max. 1B pop markets supporting UA Nazis are paying $120 bbl landed. Nigerian is selling for $118 bbl. NATO and UA already capitulating to RU with: 1. Yesterday's Nazi branded troops surrender, 2. Mass destruction of western weapons shipments as soon as

[toptiger]

80-90 pretty much minimum, but not for 5 years and that assumes russia back in the fold (unlikely for ages) and a decent size recession thereafter, 90-95 is my new level

[firstworld]

Should be close. RU can replace wetsren markets faster than west can replace them thanks to Russia owning the largest tanker fleet including the most Afrimax tankers in the world plus all the pipelines and the ability to build pipelines 10 X faster than Canada. Thay can also build new tankers and new pipelines faster than anyone because they have all the raw materials incl steel and everything