‹ England’s Ashes
WTI $106.50 -44c, Brent $108.54 -45c, B/WTI Diff – $2.04 -1c , Natural Gas $3.32 -2c
Good morning
A relatively short blog today, not much news around and we have a roadshow under way which is going well, I have never known more about lead and zinc in my puff!!
Oil Price
Another quiet day in the markets and Brent in particular is stuck in a narrow range, I would say that dependent on the inventory stats tonight and tomorrow this might be the top of the range for a while. Analyst consensus for stock numbers are for a draw of 700,000 barrels….
Libya has said that production is beginning to rise after they indicated that they were working to end the protests at the oil facilities.
Saudi Arabia has announced higher prices for Arab light for November liftings to all markets, usually a sign of cutting back exports…………….
BP
– A legal play with a bit of oil on the side
BP has said that it has new evidence of fraud in the ‘we woz robbed’ part of their Macondo case against local businesses and solicitors where they claim that they are being ripped off by illegitimate claims.
Separately its lawyers are fighting a claim that they manipulated gas prices in Texas in 2008. Apparently traders, including one trainee, bought and sold physical gas in order to manipulate the market to enhance BP’s profits from financial trading. BP deny any wrongdoing and insist that the trainee made “incorrect and inappropriate” comments in a recorded phone-call that forms the basis of the case. The words ‘hung’ and ‘out to dry’ come to mind as the trainee has been blamed for the whole incident, wasn’t called fabulous Fab was he?
Wood Group
Wood Group PSN has announced that it has won/retained a contract with Dana Petroleum for the support services to the Triton FPSO which they have been contracted to for over 14 years under different operators. The contract which is for two years and with an option to extend by one year is worth around $60m pa and will use around 150 staff on and offshore.
Wood has been making a number of announcements recently and contract wins appear to be coming thick and fast. As I have said regularly lately, despite the company being at the top of its 1,2,5 and ten year ranges and amongst the highest ratings in the sector I think that the investment risk here is not being in the stock, so I remain positive.
John Wood Group
Salamander Energy
At long last a discovery for Salamander who have been firing blanks for what seems an age, certainly the market has not given them the benefit of the doubt for some time. The G4/50-5 exploration well has come in as an oil discovery after eight metres of pay was identified and samples of 31⁰ API oil were taken.
This is a modest but helpful discovery, Dougie Youngson feels that it will de-risk the company’s other prospects in the area and should push the share price up as a result.
We are waiting for a meeting with the company, one arranged recently was cancelled but we hope to rearrange and will provide more of an update after that.
And finally…
As England were cruelly denied the chance to knock off the runs set by Australia by the rain yesterday they retained the Ashes on the quiet. However there are two more tests to come, next stop Chester-le-Street, Durham on Friday, now that is a place it really does rain, quite who’s idea it was to have a test ground there is anybody’s guess, let’s see how it goes…..
What on earth is going on at Rangers, I hope my north of the border readers can tell me? Walter Smith resigned as Chairman last night and I feel sorry for Ally McCoist who is being treated poorly given what he has got to work with…
More on the Frankenburger……………..I finished my test-tube burger, and the waitress brought me the bill.
“Two hundred and fifty grand?!” I gulped, “How is that even possible?”
“We got the bun from Waitrose,” she replied.
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