Can we buy any exposure to BRENT CRUDE on this site? I am watching as this is falling and believe that when the time comes for the turnaround CRUDE and SASOL will make a great acquisition? What are your thoughts on this idea?
I am starting to watch SOL, but don't think its safe to get in now. One day this will have to turn, but it could drop more, how much is a good guess, but i think once oil turns Sasol will too and then I think we will see a good rise, that's when we should all get CFDs in SOL, but the timing i am definitely not sure about.
Should one not be looking at companies that are involved in the transport sector or where transport is a fair percentage of their overheads. If I take our companies fuel costs they represent 15% of our overheads in one and 18% in the other. There must be quite a few companies listed who's fuel bill is higher than mine when viewed as a percentage of their overheads.
grindrod - they have the double benefit of $ based income and cheap oil. Only problem is they ship the stuff too - so if demand is falling - like Iron Ore demand, then so are their shipping volumes. So not exactly a perfect storm scenario
GND(one that I hold) have moved into transportation of land goods as well. Just like the poultry guys have not passed on the full benefit of lower input costs on to the consumer, which I knew would happen, being pretty close to that industry, those who have pretty hefty fuel bills at present will retain most of the savings from lower oil prices for themselves. The question is for how long is the oil price going to remain at these or even lower levels for it to make a meaningful difference to certain company's bottom line.
The impact of low oil price on industrial transportation costs is only relevant if there is enough to transport......manufacturing and demand for manufactured goods, the key driver. In 2008, there was nothing to transport or nowhere to transport , even though the oil price was at the lows
The fat river horse is asking the RIGHT QUESTION. Line up the best views and a sustainable oil price and you get a snap back to the $100 or thereabouts mark. This is not difficult its not if its when and if you are buying in at these levels who cares if its not the low point - its cheap with an eye to the inevitable recovery in the price. 6 months one year - who the heck cares( investor speaking here)
Partridge, i agree with you on your views. as an investor i also believe these lows are attractive to acquire some long term holdings. i am trying to see if SASOL would be a good option, the stock price is linked to the oil price, so if oil goes up so with SOL, i want to find out what their US investment is likely to do with low oil prices though, will this create a loss, or has that been hedged? RAMS, about holding the crude, i am sure you can invest in ways that don't require physical delivery, but if you really want physical delivery and have some extra cash you can always charter an oil tanker, i know that JPMorgan did this some years back and anchored it off the coast of Cyprus waiting for a higher price to go into the dock and sell it again... that just needs quite a sizable wallet though... so for us maybe investing in the oil plays is a better idea... just my thought.
Werner, I'm on the same page as you. Also wondering about Sasol's US investment. The other issue that I have and don't have an answer to yet is what impact will rising interest rates (in the US) have on there massive CAPEX project there. Did they fund the project with US debt? Will the rising interest rates have a significant material impact on SOLs profits. Anyone with any insight care to comment?