In today’s briefing:
- Allkem + Livent = Arcadium : Updated Expected Index Flows
- Commodities Going Into 2024 & Our Biggest Mistakes During 2023
- Oil Prices Surge As The Situation In The Red Sea Intensifies
- SDRL: New Contracts Set Catalyst for 2024
Allkem + Livent = Arcadium : Updated Expected Index Flows
- Allkem Ltd (AKE AU) saw its last day of trading on 21 December. There was large volume at the close as one major index provider gave it the boot.
- Another delayed their treatment at the last minute, and eliminated a cross-flow.
- But there is still a lot of net buy flow tomorrow (3 Jan) and the next day in the US. Perhaps more than I expected.
Commodities Going Into 2024 & Our Biggest Mistakes During 2023
- Happy new year guys – another chapter has arrived and it’s time to make the best out of it.
- First of all, let’s look at the past, the now and the costly mistakes we made during the past year.
- Soft commodities dominated the commodity front during 2023.
Oil Prices Surge As The Situation In The Red Sea Intensifies
- Oil prices surge as tensions in the Red Sea escalate with new and strong provocations from Iran.
- Oil oversupply concerns and weak demand persist while ongoing geopolitical tensions support oil prices.
- WTI current implied volatilities still well below elevated levels seen in October 2023.
SDRL: New Contracts Set Catalyst for 2024
- SDRL ended 2023 with a contract that is poised to set the course for day rates moving higher in 2024. Prior to Christmas, SDRL announced two new contracts with PBR
- We estimate one of the contracts has a day rate of $500,000 and should result in other bidding activity to reach and eventually exceed this level in 2024
- We are not making changes to our earnings model and believe there is now greater potential for our estimates having to be revised higher
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