Guest neesy111 Posted April 20, 2020 Share Posted April 20, 2020 Unlikely to be a surge. Read that as Skirge. Thought the return was imminent. :lol: Link to post Share on other sites More sharing options...
joeyt Posted April 20, 2020 Share Posted April 20, 2020 Unlikely to be a surge. Read that as Skirge. Thought the return was imminent. I fkn hope so Link to post Share on other sites More sharing options...
Charlies Posted April 20, 2020 Share Posted April 20, 2020 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. Link to post Share on other sites More sharing options...
Wullie Posted April 20, 2020 Share Posted April 20, 2020 It's down to $2 a barrel today isn't it? Link to post Share on other sites More sharing options...
Guest neesy111 Posted April 20, 2020 Share Posted April 20, 2020 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 Link to post Share on other sites More sharing options...
High Five o Posted April 20, 2020 Share Posted April 20, 2020 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. Edit: see Charlies post above for more accurate info. Link to post Share on other sites More sharing options...
Guest neesy111 Posted April 20, 2020 Share Posted April 20, 2020 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. Link to post Share on other sites More sharing options...
Miggys First Goal Posted April 20, 2020 Share Posted April 20, 2020 So do I put my cans anyway or not? Link to post Share on other sites More sharing options...
Norwegian-Geordie Posted April 20, 2020 Share Posted April 20, 2020 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 Link to post Share on other sites More sharing options...
Guest neesy111 Posted April 20, 2020 Share Posted April 20, 2020 It's down to $2 a barrel today isn't it? US WTI has since they have no storage left. Link to post Share on other sites More sharing options...
High Five o Posted April 20, 2020 Share Posted April 20, 2020 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. Link to post Share on other sites More sharing options...
Guest neesy111 Posted April 20, 2020 Share Posted April 20, 2020 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 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. Link to post Share on other sites More sharing options...
Guest neesy111 Posted April 20, 2020 Share Posted April 20, 2020 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. Link to post Share on other sites More sharing options...
relámpago blanco Posted April 20, 2020 Share Posted April 20, 2020 So do I put my cans anyway or not? Nah its done don't worry Link to post Share on other sites More sharing options...
Guest The Little Waster Posted April 20, 2020 Share Posted April 20, 2020 Fecks sake can we have a seperate thread for international finance , oil prices , pork belly futures etc ? Link to post Share on other sites More sharing options...
David Edgar Posted April 20, 2020 Share Posted April 20, 2020 Link to post Share on other sites More sharing options...
Guest chopey Posted April 20, 2020 Share Posted April 20, 2020 How comes petrol is still £1.09 at my local garage Link to post Share on other sites More sharing options...
Guest neesy111 Posted April 20, 2020 Share Posted April 20, 2020 How comes petrol is still £1.09 at my local garage Fuel Duty, VAT, transportation etc. Although it should be below £1 now. Link to post Share on other sites More sharing options...
Wilson Posted April 20, 2020 Share Posted April 20, 2020 Only place I've seen near mine below a quid was Costco. 1.02/1.04 most other places. Link to post Share on other sites More sharing options...
Kanji Posted April 20, 2020 Share Posted April 20, 2020 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. Link to post Share on other sites More sharing options...
David Edgar Posted April 20, 2020 Share Posted April 20, 2020 Fecks sake can we have a seperate thread for international finance , oil prices , pork belly futures etc ? Link to post Share on other sites More sharing options...
SUPERTOON Posted April 20, 2020 Share Posted April 20, 2020 Ben Jacobs from bbc sport thinks Ramadan will impact us announcing it and thinks it will be after that so 23rd of may. Link to post Share on other sites More sharing options...
xLiaaamx Posted April 20, 2020 Share Posted April 20, 2020 Wonder when the first article saying its off due to this will be then. Link to post Share on other sites More sharing options...
Guest neesy111 Posted April 20, 2020 Share Posted April 20, 2020 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. Link to post Share on other sites More sharing options...
Kasper Posted April 20, 2020 Share Posted April 20, 2020 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. Link to post Share on other sites More sharing options...
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