Possible bottom alert at 34c ?, page-9

Has anyone actually compared SXY to the POO? I suspect it has tracked the POO pretty much identically.

Senex is down 35% but oil is down 30% and the AUD/USD rate has gone the wrong way for Senex so the AUD oil price is down around 35%.

For now Senex is an oil company as it produces oil and sells the WSG gas at oil linked prices. The small amount (roughly 25% of production) of hedging will help though.

It wont be until 2020 that Senex is producing decent amounts of Atlas gas which is when the SP will decouple a bit from the POO, although WSG and Cooper Oil will still be a large chunk of production.

Senex is and will remain affected by the POO. See BPT for evidence, 50% of sales are CPI linked gas yet SP is down 30% due to POO.

These dips present a buying opportunity not a selling opportunity, assuming you are long oil..