Discover more from Reserve Report
“I don’t think I’ll see 13MM barrels a day again in my lifetime” - Matt Gallagher
Two potential restructuring deadlines are approaching, both tomorrow.
CRC pushed on its forbearance agreements:
“The Forbearing Parties agreed to extend the period in which they will forbear from exercising any remedies under the Credit Agreements w/ respect to certain specified events of default until the earlier of (a) 11:59 p.m. (NY time) on July 15, ‘20 & (b) the date the Forbearance Agreements otherwise terminate in accordance w/ their terms” - CRC 8K
Also by July 15th, Rosehill is expected to file for Ch.11:
“…will (i) file voluntary cases under chapter 11… to effect a restructuring through a prepackaged chapter 11 plan of reorganization… on or before July 15, 2020”
There’s either been behind-the-scenes negotiations or stalling (or both)…
…delaying the inevitable…
So, check back in for yourself tomorrow / Thursday AM.
Regardless of what happens, we’ll circle back on both on Friday -
The coronavirus has provided ample cover for geopolitical aggression that the international community (or even the targets) would not normally stand for.
Over the last 3 weeks, Iran has been the recipient of a barrage of sabotage:
Kavian Fariman Gas Facility Explosion - July 13th
Chemical weapons research facilities - July 10th
Natanz (the big one) - July 2nd
We’d be very surprised if it wasn’t the work of Mossad / IDF.
We don’t expect the attacks to be over; &
We expect Iran to respond
Neither of which should move market fundamentals…
…however, markets may respond to the resulting headlines -
The Oil Market is (rightly) worried about OPEC unwinding production cuts.
August US Shale Production Forecasts
PPP loans really helped the US Oil Patch
TBT Final Tonight (the winner-take-all $1MM basketball tournament) - the 22 seed is in the finals, having taken down Overseas Elite (the best team in the history of the Tourney) - we’ll be watching - catch y’all Friday -