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HISTORY MADE: US & ALLIES TO SELL 60M BARRELS OF OIL RESERVES OVER NEXT 30 DAYS!!
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cnn
#11 Posted : Friday, June 24, 2011 8:34:06 PM
Rank: Veteran

Joined: 6/17/2009
Posts: 1,627
The wholesale and retail margins at any price is constant as per the ERC formula.
The same formula takes into account the volumes and prices of cargo imported through the OTS for the previous 3 months.I guess the beauty of being a regional player is in case you are caught up with expensive stocks you can push them to markets without price caps.
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Cde Monomotapa
#12 Posted : Friday, June 24, 2011 9:02:48 PM
Rank: Chief

Joined: 1/13/2011
Posts: 5,964
cnn wrote:
The wholesale and retail margins at any price is constant as per the ERC formula.
The same formula takes into account the volumes and prices of cargo imported through the OTS for the previous 3 months.I guess the beauty of being a regional player is in case you are caught up with expensive stocks you can push them to markets without price caps.

Interesting...thanks.
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youcan'tstopusnow
#13 Posted : Friday, June 24, 2011 9:19:21 PM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
Cde Monomotapa wrote:
cnn wrote:
The wholesale and retail margins at any price is constant as per the ERC formula.
The same formula takes into account the volumes and prices of cargo imported through the OTS for the previous 3 months.I guess the beauty of being a regional player is in case you are caught up with expensive stocks you can push them to markets without price caps.

Interesting...thanks.

Applause
GOD BLESS YOUR LIFE
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Cde Monomotapa
#14 Posted : Saturday, June 25, 2011 8:28:04 AM
Rank: Chief

Joined: 1/13/2011
Posts: 5,964
Cde Monomotapa wrote:
& all those fellaz speculating on the Ke.s will burn their fingers when the next crude shipment is @ upper 80s to lower 90s to the barrel.
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guru267
#15 Posted : Saturday, June 25, 2011 10:36:34 AM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
cnn wrote:
I guess the beauty of being a regional player is in case you are caught up with expensive stocks you can push them to markets without price caps.

there is also definitely the component of public uproar... These usually have small success in bringing prices down in place of price caps albeit to a lesser extent
Mark 12:29
Deuteronomy 4:16
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the deal
#16 Posted : Saturday, June 25, 2011 11:13:13 AM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
KQ hedging structure is 50-50...their hedges are also short revolving I.e 3 month...meaning they can be adjusted from time to time but Brent trading at $85/barrel will wipe out all the hedge gains of last year and pose a danger to margins since oil above $80/barrel is no cheap oil
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VituVingiSana
#17 Posted : Saturday, June 25, 2011 11:16:48 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,361
Location: Nairobi
the deal wrote:
KQ hedging structure is 50-50...their hedges are also short revolving I.e 3 month...meaning they can be adjusted from time to time but Brent trading at $85/barrel will wipe out all the hedge gains of last year and pose a danger to margins since oil above $80/barrel is no cheap oil

The above made no sense to me...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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the deal
#18 Posted : Saturday, June 25, 2011 11:28:18 AM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
VituVingiSana wrote:
the deal wrote:
KQ hedging structure is 50-50...their hedges are also short revolving I.e 3 month...meaning they can be adjusted from time to time but Brent trading at $85/barrel will wipe out all the hedge gains of last year and pose a danger to margins since oil above $80/barrel is no cheap oil

The above made no sense to me...

@VVS 50% of their fuel is hedged at $90/barrel, the other 50% is unhedged...from that 50% of hedged fuel...they hedge 30% of it on short term basis I.e 3 months...now KQ made Sh 298 mln from their hedges last year... this year they expect Sh 2.8 bln if oil stays above their hedge cap...the danger is oil falling below $90/barrel I.e $85/barrel because they will be making hedge losses and since oil is not cheap at $85/barrel the fuel bill surge but with the way they have structured their hedges their no longer exposed as 08 and they have minimised the risk...hope its clear now.

Read more http://contrarianinvesti...-at-us90-per-barrel.html
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  | | Edit by user: Saturday, June 25, 2011 11:54 AM | Reason: Not specified
guru267
#19 Posted : Saturday, June 25, 2011 12:05:24 PM
Rank: Elder

Joined: 1/21/2010
Posts: 6,675
Location: Nairobi
the deal wrote:
KQ hedging structure is 50-50...their hedges are also short revolving I.e 3 month...meaning they can be adjusted from time to time but Brent trading at $85/barrel will wipe out all the hedge gains of last year and pose a danger to margins since oil above $80/barrel is no cheap oil


@the deal I think you are a little confused.. Lets say KQ hedges at 90$ per barrel.. then if oil is at 100$ kq makes a hedge gain of 10$ per barrel because they will still buy at 90$.

Similarly if oil falls to 80$ they make a hedge loss of 10$ per barrel because they must continue buying at 90$ per barrel as per the hedge contract
Mark 12:29
Deuteronomy 4:16
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  | | Edit by user: Saturday, June 25, 2011 12:07 PM | Reason: Not specified
Cde Monomotapa
#20 Posted : Sunday, June 26, 2011 12:22:08 PM
Rank: Chief

Joined: 1/13/2011
Posts: 5,964
Cde Monomotapa wrote:
In addition, the printing of zero calorie money a.k.a QE (Quantitative Easing) ends this month. This means no more excess liquidity artificially pushing up commodity prices & then coupled with recent Saudi output hikes should see crude prices even LOWER!!
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