by Gabriel Andre on September 24, 2008
The current weeks are oil markets a “traders market”. It means that it is the playground of short-term moves, high volatility, nervous players, and strong reversals. This is where smart traders can make a lot of money but where long-term investors are a bit lost. After a long period of clear trends, it is likely to be now a new phase of consolidation and rangy market.
As we mentioned in our last update (September 11), the main target for the 2-months decline on oil prices has been the 61.8% Fibonacci ratio of the 18-months bullish trend occurred between January 2007 and July 2008 (between points A and B on the chart).
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by Kris Sayce on August 22, 2008
A further look at the report does highlight some of issues for smallish explorers that have already found its resource and is in production. It now has to either discover more resources at its existing sites, or it has to continue with its exploration activities at other sites, while continuing to ensure production meets expectations at the existing sites.
During 2007-2008 AWE had to “plug and abandon” eight out of the nine projects it was exploring. The other one did result in a gas discovery. For 2008-2009, one has been plugged and abandoned, two have shown gas discovery and the remaining four are yet to be confirmed.
In other words, without further discoveries it is naturally harder for the company to show how it can grow revenues apart from being able to benefit from higher energy prices.
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