The AshesWTI $93.33 -1c ; Brent $108.26 +78c; B/WTI Diff – $14.93 + 83c ; Natural Gas $3.68 +12c

Good morning

I must have misread the minutes of the FOMC meeting in which they indicated that they might start to taper in December, sometimes I don’t know whether their peculiar form of guidance is highly sophisticated or just dumb, actually I just got it…….

Talking of the Fed, Mrs Yellen is being voted on today by the Senate Banking Committee, assuming this goes through it goes to a full Senate vote, this is a formality, or is it………………………?

Oil Price

All quiet on the oily front, the EIA inventory stats were better than expected foxing the analysts who were probably still out celebrating after last week. Crude built by 375,000 bbls vs consensus of 1m but the interesting number was a draw of 4.8m barrels of distillates, normally a sign of a picking up economy.

The Oil Council – World Assembly

A busy but interesting three days of the OCWA, 85 speeches (felt like more) 1,300 delegates and more panels that a timber frame house. Unfortunately as the event is held under Chatham House rules I am forbidden from disclosing any of the pearls of wisdom but I can pick out a few of my favourite and less favourite speeches and gems of language mis-use.

So, I liked the Women in oil and gas panel, even BP Chairman Svanberg came over well, presentation of the week was Keith Hill of Africa Oil followed by Jeffrey Currie who is a consummate pro giving good speech without actually forecasting the oil price which I thought was his job! My panel was immense, all quality and oozing class, other best panel Chair was Carol Howle, Head of Trading at BP who showed her skills by getting a BP slide up between every speaker. Others to impress were Didier Holleaux of GDF Suez (catch phrase ‘liquids are a girl’s best friend…?) Francis Egan and of course Martin Lovegrove who picked up his lifetime achievement award impeccably. More pearls tomorrow including the speaker who described the Women’s Oil Council as ‘Golden Skirts’, ouch!

Kentz Corporation

Kentz appear to put out contract awards whenever there is a y in the day at the moment, so today if its Thursday it must be a five year framework agreement in Saudi Arabia. As is often the case with frameworks there is no value attributed to it but $40-70m would appear to be in the right ball court and as it is in the TSS unit it is the highest margin part of Kentz. One other thing, Kentz has been doing very well in the Middle East lately and this contract, in Saudi Arabia for Aramco and Exxon Mobil adds to that success rate. Chronically cheap………………..

Kentz 1 Year chart

Kentz 1 Year chart

Enteq Upstream

Interims from Enteq this morning and the market has been remarkably cruel to them and unless I am being even more dense than normal an 18% fall is totally unjustified, particularly on no obvious volume.

At the meeting, at which it was good to see a few more followers at long last, the management gave a run through of the business for new analysts to the company, explaining the ‘buy and build’ policy very much in the mould of Sondex from whence they came.

It appears with new analysts and the only forecasts on the street being ‘endorsed’ by the company, EBITDA and margin levels have yet to be established and whether intended or not the CEO said in the meeting that margins were falling. Don’t look at the chart, it won’t inspire you, I still have unerring faith in this team to deliver the goods and I intend to take them round and let them persuade what is so far, apart from its founder shareholders, a suspicious investing public.

Enteq Upstream 1 Year chart

Enteq Upstream 1 Year chart

And finally…

Its Ashes time again as battle re-commenced at the Gabba in Brisbane last night. Australia won the toss and took to what resembled a road to bat first. England will be happy with keeping them to 273-8 at stumps as Stuart Broad was fired up by a demented Aussie crowd who had even gone to the trouble of preparing welcoming banners and took 5-65 in the innings.

Football brings you back to earth as England Manager Roy Hodgson has announced he does not expect to bring any new faces into the squad for next year’s World Cup.

In the ‘you couldn’t make it up category’ a Boeing 747 Dreamlifter is stuck at a minor airport in Kansas after it landed there by mistake, the aircraft is too large to take off and there isn’t a tug to turn the plane around.