US Crude oil inventories increased around 5m barrels from the previous week. Crude oil prices “still holding” which is a good indicator. I just don’t see the endless supply at those low prices continuing through 2020, even if it is coming from the largest crude supplier. Increased demand will eventually “dry up” supplies at those previous pricing levels. There will be new levels. On the crude contracts that settled in “June” the oil traders could face future losses and less barrels in the coming months due to poor decision making. But, is “buying-in” right now really wise no matter how much you think they know, even if crude is in contango.
Remember the day GSPE hit $.006/share, I know some “Individual”/Retail investors took stronger positions. Talk about fast and furious trading with the system. Right place, right time, quick decision making and boom. I believe most of that took place in a thirty minute window. So the question is how many GSPE shares did the MM’s really accumulate at $.006 that day and still have. Then there are the legitimate Dark Pools of Liquidity, which sometimes don’t get picked up by the HFT predictors. Not a retail investor’s favorite subject.
I can understand the skepticism, the one thing I’ve noticed over the past year about Gulfslope is how things don’t seem to pan out. For example, the Ensco-102 Rig contract, the Anadarko Prospect, the Farm-in JV, the Tau-2 well. I still see a Tau-2 well insurance re-drill sometime between the last quarter of 2020 and first quarter of 2021. I think it might be with more than two working interest partners, but who really know besides the partners. I don’t anticipate a R/S until there is production on the horizon. Remember when Netherland Sewell and Associates, Inc. was working in tandem with Gulfslope’s drilling of the Tau-1 well, so I could see a new ‘NSAI’ report immediately following the drilling of a Tau-2 well.
After all this time, for me, waiting until then for this Sleeping Giant is not that big of a deal.
Not surprised there’s still no real GSPE volume liquidity,
Smith
