WTI $97.34 -31c ; Brent $109.39 -2.22 ; Differential $12.05 -1.91 ; NG $4.23 +12c
WTI fell yesterday but not by as much as Brent thus narrowing the differential to only 12 bucks, that sell at $20 beginning to look quite smart! For Brent the German industrial output took the shine off potential economic growth in Europe.
Inventory figures are what is keeping WTI relatively firm, stats this week are expected to show a fall of around 3 million barrels. Interestingly, stats are expected to show that Gulf coast refiners are to ship a record 965 kt of refined fuel to Asia this week.
The EIA put out a note saying that production from the Bakken in North Dakota is about to hit a new milestone, any day now should see it hit one million barrels a day with total unconventional oil producing 3.99m b/d.
BG has announced increases in its Tanzania resources estimates. Mzia and blocks 1,3 and 4 in total have concluded a successful drilling campaign. Mzia turns out to be the second largest after Jodari in the programme at 4.7 TCF bringing the total now to 15 TCF plus exploration.
Pretty good publicity all round today and my discussions with the management yesterday were very positive, I’m sure this is a very good deal.
I think I am getting to the bottom of the GKP story now. Ahead of Fridays day in court yesterday’s offer of £17.5m was just that, a speculative offer, rejected by GKP. They will still be in court on Friday as the offer looks to me to be a fair bit short of what they are owed, accordingly I suspect that we haven’t heard the end of this. One thing is for certain, it was never a settlement as some brokers and websites considered it.
Europa Oil & Gas
A pre-AGM statement from EOG which has been on my radar screens lately for a number of reasons. The successful partnership with Kosmos in the South Porcupine Basin, offshore Ireland is going well and Kosmos are moving ahead quickly with their side of the deal.
EOG are as confident as they can be about possible monetising of their French permit although I wouldn’t hold your breath, it is possible that something might happen there next year.
Finally they will get some action on their interesting portfolio in the UK next year, I expect that the one in three Wressle prospect will drill, it has been delayed by the new environmental requirements.
Hull were very unlucky last night as a Swansea players virtually picked the ball up in the penalty area, maybe he was trying to get a card…. As for spot fixing in football, inevitable really and what was I thinking about when Suarez had all that bother, he just wanted another 70 grand!
Expect big changes in the England cricket team for Fridays test, not sure who’s in the squad who could come in and do better, Bresnan clearly but you cant drop English Kev and the only other cert to face the axe should be captain Cook and you aint doing that methinks.