WTI $71.78 +44c, Brent $80.78 +35c, Diff -$9.00 -9c, NG $3.24 +8c
The oil price did end up on the day yesterday but at one stage looked like it was going to be nearer two bucks rather than the change that it turned out to be. With ‘KhashoggiGate’ in full swing the worries about a full scale diplomatic feud between Washington and Riyadh heightened but towards the end of the day some pragmatism came into being as if the two big dogs realised that a fight was unwise.
What it does do is to serve to remind us, if any were ever needed in this game that geopolitical uncertainties persist and can come from left field very quickly. This market will normally behave sensibly when we talk about fundamentals but as I said yesterday it’s the unknown unknowns that are sent to try us.
Sound has announced that it has received Moroccan Ministerial approval of the new 8 year Greater Tendrara Petroleum Agreement. CEO James Parsons commented ‘ this secures energy rights to potentially transformational acreage up to 2026’. As a result of this deal Sound holds an operated 47.5% position in the GTPA with partners Schlumberger (27.5%) and ONHYM (25%) holding the rest.
Sound is entering a busy time after a long period of behind the scenes activity from the exploration department. News from the company has exploded in recent months as they gear up to the autumn drilling programme in Eastern Morocco. I am expecting the well TE-9 to spud imminently and with a large group of investors visiting Tendrara this week for the spotlight to return on the company. #drillinginthedesertagain
Two links today, my Voxmarkets Podcast from yesterday…
And an interview I gave to Doc Holiday of Total Market Solutions on Friday…
LSE Investor evening.
And I am very much looking forward to seeing a few of you at the LSE Investor event tonight, its a sell-out and we have three great companies presenting.
Form from the World Cup returned to England last night as they beat Spain in their own back yard and completed a memorable victory against a leading nation under Gareth Southgate. Unfortunately Northern Ireland lost 2-0 to Bosnia-Herzegovina.
Tonight its the ROI v Wales in the same cup which is designed to secure qualification for the European Championship.