Replies to post #7150 on Addax Petroleum (fka AXC)

[Julius Erving]

Troy, MY ERHC shares in the Netherlands have been converted very fast, some time ago now already.

http://oil-price.net/en/articles/20-dollar-oil-price-and-six-trends.php

Oil price in $20 range and 6 trends for the year

In conclusion

Oil prices fell on a combination of factors: competitive overproduction outstripping a steady global demand and weakening of OPEC. From a peak $115 a barrel in August 2014, the oil prices have steadily fallen. (Good for consumers and bad news for the oil industry, to be sure.)

The oil production, though, has grown by 2.8 percent to average 96.2 million barrels a day, which is the largest annual increase since 2004. Figures from October, put the inventories in the Americas, Europe and Asia at 4.4 billion barrels compared to 3.8 billion barrels in the last five years.

While we forecast that the global oil demand will increase by 1.3 million barrels per day this year, how the prices will move in the future shores up more questions than answers. In a nutshell, the geo-political tension, oversupply/undersupply of oil and weak/strong demand will together decide the direction the oil prices will roll. This, you should know, is never simple as the oil market is fleeting, fragile and contradictory. Remember, it's never about one foretaste or particular factor. Be sure, a tight supply in oil, whatever be the back-story, is capable of sending the oil prices North in no time. Russia is facing recession but is yet to cut oil supplies and there is always OPEC to sever the glut.

The watchword is 'weariness'. Obviously, the oil prices are 'perceived' low, yet to put things in perspective they are nowhere near the adjusted for inflation all-times low of $12.45 a barrel from 1998. Clearly they can go lower.


The Doctor.

[oil-cowboy]

Agreed. Well put. #itsgametime

"They have said, repeatedly, that this company in whole is up for grabs. The less ERHC sells for, the less they have for their new venture.

Contrary to almost everything posted on this safe haven, their interests may be very closely aligned with ours for a change."