Open: London Session | Forex, Metals, Oil, Agriculture November 20, 2020



Unfortunately, I caught a major virus while traveling through Central America; I have a coffee business that gets me traveling throughout this part of the world.


W&T’s second-lien bonds are currently trading at 63 cents on the dollar, indicating a fair amount of concern that they will be repaid. However, the good news for dollar-based investors is that the pound is undervalued in real effective terms and appears to be forming a long-term base.


Brent crude was up 3 cents at $44.23.Gold was weaker with spot prices off 0.1 per cent at 1,865.3 an ounce.


W&T may end up averaging around 43,000 BOEPD in production (36% oil, 48% liquids) during 2021 if it continues to go with a quite limited capex budget. At that production level and current strip prices (including $43 West Texas Intermediate oil), W&T may be able to generate $412 million in revenue after hedges. W&T Offshore is a Gulf of Mexico oil and gas producer that gets around 60% of its production from federal waters and 40% of its production from state waters.
W&T’s results were depressed in 2020 by a combination of low oil and natural gas prices and an exceptional amount of Gulf of Mexico storms. All of this gets us to have a constructive outlook on oil, but we believe price recovery will be a late 2021 story. Hurricane Laura shut in more GOM oil production than any storm since 2008. While the developments are wonderful for the world, we think deployment will take some time and oil demand recovery will also lag. On the political side, key additional Iranian oil barrels might hit the market in 2021 as sanctions are likely to reverse.
W&T traded at a valuation of around 5.5x to 6.0x forward EBITDAX earlier in 2020, before the pandemic-induced oil price crash. This is significantly higher than the roughly 50% estimated upside for W&T’s stock in a low-to-mid $40s WTI oil scenario.

United States

Similar to the Philly Fed report, expectations for six months in the future were also slightly lower this month. Mnuchin released a letter to Fed Chair Jerome Powell calling for the return of funding for several Fed lending programs that rely on Treasury s backing. The minimum increment in pricing limit orders in the US for most retail orders is $0.01 (you might be executed at a smaller increment) and displayed relative to NAV. Whereas the Philly Fed handily beat expectations, the 10th District’s headline reading matched expectations with a 2 point decline to 11.
He has been quoted in a variety of financial news publications, such as CNBC, the Wall Street Journal, and the New York Post. The second regional Fed release this morning came from the Kansas City Fed. The CAGR estimate for Rush Street Interactive is 65% for 2019 to 2024, which is higher than rivals DraftKings, (Nasdaq: GAN), and (NYSE: LCA) listed in the October presentation.
Wall Street analysts are bullish with a price target of $31.29. To learn more about Bill Ackman, check-out the book “Confidence Game: How Hedge Fund Manager Bill Ackman Called Wall Street’s Bluff”. In Illinois, BetRivers currently competes with (Nasdaq: DKNG), FanDuel, PointsBet and William Hill.


Beijing taking into consideration the Covid-19 vaccine needs of SCO members – and this could be extended to RCEP. But it’s intriguing to see what President Xi Jinping said at his keynote speech at the Council of Heads of State of the SCO last week.


The move comes after Lukashenko disregarded EU calls for new free and fair elections, pursued a sometimes violent clampdown on demonstrators and moved closer to Russia. There’s a blow for coronavirus drug remdesivir, an unexpected divide in Washington and yet another warning on Brexit. The confidential document based on input from intelligence services in EU countries is part of the development of a Strategic Compass.