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Various: N-O has lost the plot over potential end of Mike Ashley's tenure


Jinky Jim

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Hearing very bad things about the impact of the oil price collapse on this deal. Potentially a moratorium on all state-backed acquisitions as the Saudis seek to consolidate their cash position.

 

Their deficit will be massive with oil at $10 a barrel, I think it has to be at $80 to break even.  Still got deep pockets mind, only thing it will affect is probably the investment they put into the club.

 

They can still make a profit if oil drops to ~4$ per barrel, albeit not very much profit. Well Aramco can, North Sea I think the break even point now is ~30$. Over the past 3 weeks or so we've had orders cancelled left, right & centre. Apart from Aramco who seem to be using the oil price drop to their advantage when negotiating for equipment/services.

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Guest neesy111

Hearing very bad things about the impact of the oil price collapse on this deal. Potentially a moratorium on all state-backed acquisitions as the Saudis seek to consolidate their cash position.

 

Their deficit will be massive with oil at $10 a barrel, I think it has to be at $80 to break even.  Still got deep pockets mind, only thing it will affect is probably the investment they put into the club.

 

They can still make a profit if oil drops to ~4$ per barrel, albeit not very much profit. Well Aramco can, North Sea I think the break even point now is ~30$. Over the past 3 weeks or so we've had orders cancelled left, right & centre. Apart from Aramco who seem to be using the oil price drop to their advantage when negotiating for equipment/services.

 

Sorry was $60 dollar a barrel.  Yes you are right about armco being able to still make a profit due to the sheer scale, but there government revenues are highly dependent on oil (hence why they have a PIF).

 

https://www.reuters.com/article/saudi-budget-forecast/saudi-arabia-fiscal-deficit-could-be-7-4-in-2020-8-1-in-2021-sp-idUSS8N27F01N

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Guest neesy111

80 for a barrel is far from correct. Saudi oil is one of the cheapest to extract, even northsea oil from the newest rigs break even at around 40.

 

I'm talking about government deficits.  Saudi Arabia is 95% dependent on oil for GDP.

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Hearing very bad things about the impact of the oil price collapse on this deal. Potentially a moratorium on all state-backed acquisitions as the Saudis seek to consolidate their cash position.

 

Their deficit will be massive with oil at $10 a barrel, I think it has to be at $80 to break even.  Still got deep pockets mind, only thing it will affect is probably the investment they put into the club.

The onshore oil in most Arab countries costs next to nothing to produce, so they will still make tons of money at $10. Offshore fields usually have a higher break even, the offshore field I work on for instance breaks even on around $14. Older fields or fields with complicated geology would have a higher break even, but even for those a break even on $80 would be extremely high :lol:

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80 for a barrel is far from correct. Saudi oil is one of the cheapest to extract, even northsea oil from the newest rigs break even at around 40.

 

I'm talking about government deficits.  Saudi Arabia is 95% dependent on oil for GDP.

 

OK, then I understand.

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Guest neesy111

Hearing very bad things about the impact of the oil price collapse on this deal. Potentially a moratorium on all state-backed acquisitions as the Saudis seek to consolidate their cash position.

 

Their deficit will be massive with oil at $10 a barrel, I think it has to be at $80 to break even.  Still got deep pockets mind, only thing it will affect is probably the investment they put into the club.

The onshore oil in most Arab countries costs next to nothing to produce, so they will still make tons of money at $10. Offshore fields usually have a higher break even, the offshore field I work on for instance breaks even on around $14. Older fields or fields with complicated geology would have a higher break even, but even for those a break even on $80 would be extremely high :lol:

 

See my other posts, I'm on about government deficits and why it's related.  They've been running deficits despite oil being around $50-$60 a barrel.

 

I know it's incredibly cheap to extract, same with gas for Qatar.

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Guest neesy111

80 for a barrel is far from correct. Saudi oil is one of the cheapest to extract, even northsea oil from the newest rigs break even at around 40.

 

I'm talking about government deficits.  Saudi Arabia is 95% dependent on oil for GDP.

 

OK, then I understand.

 

:thup:

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Guest The Little Waster

Fecks sake can we have a seperate thread for international finance , oil prices , pork belly futures etc ?

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Guest neesy111

How comes petrol is still £1.09 at my local garage

 

Fuel Duty, VAT, transportation etc.  Although it should be below £1 now.

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the whole point of the PIF is to diversify out of oil, you'd assume this deal would be something that wouldn't be of issue to them and more aramco and other energy related sector issues.

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Guest neesy111

the whole point of the PIF is to diversify out of oil, you'd assume this deal would be something that wouldn't be of issue to them and more aramco and other energy related sector issues.

 

I don't think the actual buying of the club is an issue, it's probably how much they bankroll the club with.

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the whole point of the PIF is to diversify out of oil, you'd assume this deal would be something that wouldn't be of issue to them and more aramco and other energy related sector issues.

 

I doubt Newcastle is a way to diversify their portfolio. It’s a marketing investment. This rumour is 99% sure bullshit but marketing generally seems to be the first thing cut when things dont go that well.

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