WTI $99.04 -1.77 ; Brent $110.05 -20c ; B/WTI Diff – $11.01 ; Natural Gas $3.67 -10c
Non-farm payroll today, just doesn’t seem right on a Tuesday but market expectations are for 185,000 but there is a wide range from 155,000 to 240,000. Marcus says that 200,000+ might not be out of the question as the Chicago Fed yesterday ruled out early tapering.
The WTI price flirted all day over here with the $100 level but it took the delayed EIA inventory stats to push it over the edge, that data to be frank was of no great surprise as the API stats last week had shown a big stock build. We go straight into this week’s API numbers tonight and back to normal for the EIA numbers tomorrow. With the Brent price holding up last night the differential has widened to over $11 this morning but traders are still quite bearish about it not breaking out at all and feel it may well test $106.67 again before long.
Finally my theory about Saudi domestic production vs exports in the summer seems to be on track. With the new field coming on-stream, August production came in at 10.19m b/d up 156,000 b/d since July but exports in August were 7.795m b/d admittedly up 325,000 on July.
The bidding on Libra that we talked about yesterday came good as it was announced who are the proud owners of stakes in the field. They are Petrobras 40% and Operator, Shell 20%, Total 20%, CNPC 10% and CNOOC 10%. They are all due for their shares of the $1.4bn signing fee and work starts straight away.
As highly hyped wells go the Eni one in the South-West Barents Sea was one of the biggest, certainly lately the Bonna prospect has been talked about a great deal. Regrettably despite the hype it has come in a duster and will be plugged and abandoned as a dry hole, it is however early days for the acreage.
Wood Group GTS has won a contract with Talisman Sinopec Energy to provide turbine maintenance support services for 22 Siemens Ruston gas turbines on the Buchan, Clyde, Tartan and Flotta installations in the North Sea. Only described as ‘ a multi-million dollar’ contract it will last for five years and follows a 10 year turbine fleet maintenance contract between the two companies.
EnQuest has announced that it has bought the Greater Kittiwake area assets from Centrica including the Kittiwake-Forties pipeline for $39.9m plus debt of $5.1m. EnQuest doing what it does best………….
The long-awaited farm-out of interests has been announced by Dart who are bringing in GDF Suez into 13 of their licences in England and Wales in both the eastern and western parts of the exciting Bowland Basin. Netherland Sewell have previously certified 60 TCF of shale GIP (best estimate) and 4.56 TCF of CBM 3C contingent resources across the 13 blocks of the farm-out.
GDF Suez will pay to Dart $12m in cash and meet Darts 75% share of costs, up to $27m in addition to their own share. The exploration and appraisal program will be over a three year period and will include drilling up to four shale gas exploration wells and ten CBM exploration wells. No time is given but we assume that this program will start early next year.
This is good news for Dart, coming hard on the heels of the funding in Australia it further strengthens the balance sheet as well as reduces future capital commitments. The shares responded with a 30% bounce in Australia leaving them close to the year’s high, expect a dual listing as promised in the recent raise which can only continue to up the company’s profile in an area already very high profile.
Yo! After starting the season 0 and 6 the New York Giants must have felt that they couldn’t buy a win but last night they managed it, beating the Minnesota Vikings 23-7.
Back to the Champions League as Chelski go to Shalke the Gooners host Borussia Dortmund and Celtic continue their run of easy games with Ajax tonight. Last night Fulham took Crystal Palace apart beating them 1-4 with a wonder goal from Kasami already being considered for goal of the season.
And today sees the launch of THE book, true to form Fergie has kicked the journos out of the pre-launch….
Jose Mourinho has been charged with improper conduct by the FA after complaining about time-wasting. He had to go and sit with the fans but said afterwards “To be with the fans was not funny” as the picture shows!!