Oil price, Touchstone, Tullow, Velocys And finally…

WTI $63.39 -76c, Brent $66.86 -76c, Diff -$3.47 n/c, NG $2.76 +1c

Oil price

Oil remains nervous in the risk-off market place and with the EIA STEO forecasting increased US production bulls were to a large degree holding off. Selling when the squids shoved up their forecasts would have been wise but that’s like shooting fish in a barrel…

The EIA forecast that US production is now 10.2m b/d and expected to be 10.6m b/d this year and 11.2m b/d  next year which is another increase in expectations but this will only happen if crude oil remains well above $50 which seems pretty likely just now.

Last nights API stats surprisingly showed a draw in crude of 1.1m barrels, better than expected as was the draw in gasoline stocks, distillates grew by more than expected as recent months.

Tullow Oil

Results from Tullow were in line with expectations, production was 89,100 b/d with guidance for this year of 82/- to 90/- showing no growth but an exciting drilling programme starting in Namibia. Gross profits were $815m and after write offs and impairments the company showed a post-tax loss of $189m. Capex is substantially up as one might expect, $460m this year after $225m last year.

Touchstone

Touchstone announce the start of a ten well drilling programme in Trinidad which is fully funded and should be completed by August giving potentially good news quite quickly. A second rig should shortly be operational giving further operational scope and the company seem confident of good news on the drilling front.

Velocys

I am deeply saddened by the removal from the Velocys board of Julian West, one of the brightest sparks in the industry and who would be a great addition to any board of directors. Velocys’ loss will surely be someone else’s gain…

Links

Herewith my Podcast link for this week covering a number of pertinent stocks…

VOX Markets podcast: Malcy on Rockhopper, Premier Oil, Trinity, Igas Energy and Diversified G&O

And my interview with Andrew Benitz, CEO of Jersey Oil & Gas…

Core Finance CEO interview: Andrew Benitz of Jersey Oil & Gas

Emails

My apologies to those who are awaiting replies to emails, I am not able to give individual financial advice and at the moment am very busy so little chance for comments i’m afraid. I am putting together the new bucket list and appreciate all your lobbying!

And finally…

Swansea continue their good run of form by putting 8 goals on Notts County last night, the Terriers beat Birmingham City to secure a home tie against the Red Devils which they will relish after their previous game at home. Tonight Spurs have an unwanted game against Newport who they couldnt see off last time but surely will tonight.

The first T20 against Australia is underway and the Aussies have won game one at a canter.

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