Price formula for Oil

fulltilt · 1 Price formula for Oil Sun Sep 13, 2015 7:41 pm

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Which stocks in particular will benefit with the introduction of price formula for Oil? Obvious is Manufacturing sector.. any particular stocks or any other sectors that are likely to benefit when the SL govt introduce the price formula to determine fuel prices.. as per the news, the new formula will result in a price reduction in fuel prices..

Yahapalanaya · 2 Re: Price formula for Oil Sun Sep 13, 2015 8:18 pm

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fulltilt wrote:Which stocks in particular will benefit with the introduction of price formula for Oil? Obvious is Manufacturing sector.. any particular stocks or any other sectors that are likely to benefit when the SL govt introduce the price formula to determine fuel prices.. as per the news, the new formula will result in a price reduction in fuel prices..

All sectors except oil company.Big profit for tile conpanies because it's main cost of production depend on oil.It will be beneficial to manufactoring sectors,plantations,hotels,....

Oil company's profit will reduce now but it will save them when oil price goes high.
Very Happy

kumarweerarathne · 3 Re: Price formula for Oil Sun Sep 13, 2015 8:47 pm

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Its hard to think dat govt would go for a price cut since they are stucked in debt & huge govt costs...

kumarweerarathne · 4 Re: Price formula for Oil Sun Sep 13, 2015 11:15 pm

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This is a highest production since 2008, and iranian inflow is massive after removing sanction. I saw some analyst said barrel can go down to 20$ in 2016.

Yahapalanaya · 5 Re: Price formula for Oil Mon Sep 14, 2015 2:50 am

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kumarweerarathne wrote:This is a highest production since 2008, and iranian inflow is massive after removing sanction. I saw some analyst said barrel can go down to 20$ in 2016.

20$ possible if oil producing countries are ready to sell the product less than their production cost

cyclops

fulltilt · 6 Re: Price formula for Oil Mon Sep 14, 2015 7:42 am

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It's down below USD45 today. Apparently the production of oil is much more than consumption. Below USD 20 seems a possible reality.

peacockman · 7 Re: Price formula for Oil Mon Sep 14, 2015 10:32 am

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Yahapalanaya wrote:

kumarweerarathne wrote:This is a highest production since 2008, and iranian inflow is massive after removing sanction. I saw some analyst said barrel can go down to 20$ in 2016.

20$ possible if oil producing countries are ready to sell the product less than their production cost

You're right Mr. Kumara, I also heard this news from one of the expert economists. Crude Oil may come down up to $20/B and the volatility will continue till 2017....

VALUEPICK · 8 Re: Price formula for Oil Mon Sep 14, 2015 11:01 am

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Yahapalanaya wrote:

fulltilt wrote:Which stocks in particular will benefit with the introduction of price formula for Oil? Obvious is Manufacturing sector.. any particular stocks or any other sectors that are likely to benefit when the SL govt introduce the price formula to determine fuel prices.. as per the news, the new formula will result in a price reduction in fuel prices..

All sectors except oil company.Big profit for tile conpanies because it's main cost of production depend on oil.It will be beneficial to manufactoring sectors,plantations,hotels,....

Oil company's profit will reduce now but it will save them when oil price goes high.

I agree with Yahapalanaya.

May be it can come down to around $30. In an extreme situation, it can come down to around $20. Now we have to forget any recovery in palm oil, soya bean oil, corn (maize) oil, Ethanol (sugar) oil and some other oil etc in the short to medium term. Those commodities went up not only due to demand but also due to speculation in the derivative markets. It is time to identify some emerging commodities such as tea and solar.

skyfall · 9 Re: Price formula for Oil Mon Sep 14, 2015 11:02 am

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kumarweerarathne wrote:Its hard to think dat govt would go for a price cut since they are stucked in debt & huge govt costs...

Very true

VALUEPICK · 10 Re: Price formula for Oil Mon Sep 14, 2015 11:14 am

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kumarweerarathne wrote:Its hard to think dat govt would go for a price cut since they are stucked in debt & huge govt costs...

They might consider when it falls another few dollars. We will see further price weakness for commodities in 2017 and 2018 when USD becomes very strong. Exception is emerging commodities. Oil importing frontier countries and high energy consumers like USA are top winners. Their commodity inflation will come down and Industries in those countries will have opportunity to expand their businesses.