Oil traded above $60 a barrel amid concern about Libyan supply after government forces struck Islamist militias close to the nation's largest terminal at Es Sider.
Brent gained as much as 1 percent in London. Libya's government said its action was prompted by a militia attack on Es Sider where loadings were halted earlier this month. Libya's output has declined to 352,000 barrels a day, according to Mohamed Elharari, a spokesman at state-run National Oil Corp. That compares with production of close to 1.6 million barrels a day in 2011. Trading volumes are about 88 percent below the 100-day average for the time of day with much of Europe on holiday after Christmas.
Oil traded above $60 a barrel in London amid the highest volatility in more than three years as Saudi Arabia, the world's largest crude exporter, is seen to be signaling its confidence in the market.
Brent futures rose as much as 0.6 percent, climbing for the second time in three days. Saudi Arabia's assumption of oil at $80 a barrel next year is sending a message that the government expects a price rebound, according to John Sfakianakis, a former economic adviser to the kingdom's finance ministry. Implied volatility for at-the-money options this week increased to the highest since October 2011, data compiled by Bloomberg show. eom
Saudi Arabia's 2015 budget is probably assuming an oil price of $80 a barrel, and will be seen as a sign of confidence in the market, according to a former economic adviser to the country's government. The assumption is down from $103 a barrel for this year, John Sfakianakis, who used to be chief economic adviser to Saudi Arabia's Ministry of Finance, said by phone after the budget was announced yesterday. The world's biggest crude exporter set 2015 spending at 860 billion riyals ($229 billion) with revenue falling to 715 billion riyals from 1.046 trillion riyals in 2014, the Finance Ministry said. Oil accounted for 89 percent of its 2014 revenue. eom
I do not know but I bought 45 put contracts at a SPO = $23 and sold my puts at a SP = $9.5 a couple of weeks ago. Someone bought my puts for a 30K gain on my end? It was like candy to a kid.
Opinions what you don't understand is their option hedges and 3 way collars. You thought options were shares so you have no clue. The company is 100% hedged in 2014 meaning they can exercise their options before 2014 expiration and make a huge amount of cash flow. This is true whether you comprehend it or not....it does;t matter what you say or think its the fact. In 2015 a new set of hedges kick in and expire at the end of year. These hedges can be exercised partially or fully for additional sum of cash flew. Again you won't comprehend but this is how it works.
Line and LNCO will be at zero divvy soon. You are right! The stocks will be trading at $4 soon.
Seeking Alpha press
"As I've pointed out more times than I can count, LINN Energy's distribution should be incredibly safe. The company's oil and gas hedges have locked in an average of 90% of its cash flow for the next two years as we see on the following slide. As that slide notes, LINN Energy hedges substantially more of its production than either its upstream MLP peers or its C-Corp peers. And yet, despite this protection its unit prices have been beaten into a pulp -- down an unbelievable 46% over the past year.
However, given that the company's cash flow is so well protected, instead of paying that cash flow out to unitholders, the company could decide to take the lemon of an obliterated unit price and make some lemonade by engineering a massive unit buyback. By doing so, the company could take out a huge chunk of units, which would reduce the amount of future distributions because they'd be paid over fewer units. In the second quarter, the company announced that its board had authorized the company to buy back units up to $250 million. Just a few weeks ago, that would have resulted in the company's ability to buy back 11 million units, which would have saved the company $30 million in annual distribution payments. However, that same buyback if done today would result in the company buying back 15.4 million units, which would result in the company saving $44.6 million in annual distribution payments. For some perspective, last quarter, the company's distribution was $241 million, so the current run rate is $964 million per year. So, just in executing its currently authorized buyback, the company could cut its distribution requirement by 4.6% over the next year. That alone would put its current distribution on much more solid ground. That said, given the falloff in the company's unit price, I think LINN Energy could take things a step further and make the distribution cut everyone is expecting."
I never said I am always right in my predictions...but I do make them. LINN has been a rough ride and as I said to you in a previous post this is only the 2nd time I have had to use PUTS as insurance. The problem with LINN at the moment is that investor confidence has been totally shaken. Investors seeking higher dividends flocked to LINN in order to achieve this while understanding the company is hedged. The problem is LINN has been falling faster than even OIL futures so the confidence is zero at this time. Most long term LINN investors have been shattered and will move on causing this dramatic decline. These investors will not buy into LINN anymore. A new era needs to develop where NEW investors see longer term investment in LINN. This will only come about once the company addresses the issues at hand.
That was a wrong prediction on my part and you have finally taught me that there is NO hope for LINN. Your posts and negativity have convinced me that OIL is headed much lower and the BRY acquisition will hurt for years and LINN's SP has not bottomed and management is useless and there is no SP level support and that LINN is basically a worthless investment.
Your predictions are based on..."hopefully we stabilize", "why is this the bottom?", "why did you set a price target of $11.50"....Its all questions then when LINE heads south you say "I told you so"....what a joke.
At least I have an opinion and post it. You are like Jim Cramer as we all know you follow him. You are great at predicting the obvious....in hindsight. You only state what has occurred already but you NEVER predict what will happen in the future to LINN or OIL. You can't think for yourself because you are an idiot with an IQ = LINN SP. I on the other hand have opinions and sometimes I am wrong and sometimes I am right, but I have a strategy and always ned up ahead.
Opinions, as you buy more LNCO and remain negative on LINN your reputation on this board says it all. You are all talk and stupid actions? You are always negative on LINN and OIL for that matter yet you continue to hang around this board and haunt everyone with your negativity. Yet, you keep "buying LNCO" now as you feel it is a good investment but yet you attack all posters who have anything positive to say? You are an idiot who wants to feel important but does not have the intelligence to do so. You thought PUTs were traded as shares on the NYSE, that is how smart you are. Yes I have averaged down since 28 but I used PUT options to protect my downside as I am a "smart" investor unlike you buying in the open market at 21 but no options. I made 30K from 23 to 9 buying APR-2015 PUTS and I know that hurts you but its part of my trading strategy. If you look at my DCA its now at $21 without puts. I sold them when SP hit $9 so now my "total" trade including PUT sales makes the DCA at $15. You will never understand this strategy as you are a pea brain. GL
No the avg down to $15 includes the PUT gains. Geez you are something else. Anyways, keep buying your LNCO we are headed back to low 9's and possibly less as OIL shows no signs of recovery.
No plays just puts from 23 to 9. My breakeven now is $15 (which by the way is much better than you at 21). I never lose $ and won't on this one. I will still be here though as I will buy PUTS again on next gap up.
Your relevance to this board is null. With your bearish outlooks and negativity to any positive poster who displays their opinion leaves doubts for you and your bonds which will be worthless in 12 months. . Bearish quotes like this..."Despite what some overzealous posters may say, there isn't a ghost of a chance of LINE reaching the 20s in the short term" is what hurts this board. I will sell on next gap up and short it back to single digits using PUT options.