WTI $100.32 +77c, Brent $112.18 +20c, Differential $11.86 -23c. NG $4.41 -3c
A sharp rally late on Friday lifted WTI as the EIA inventory stats showed an unexpectedly high fall of 4.7m barrels of crude, analysts had expected only 2.3m so wrong again! Brent has remained reasonably strong as all the usual culprits are holding back oil from the market, not the USA though as production has now reached a record of 8.1m b/d.
The downside is still out there, Iraq has requested to rise from 2.3m b/d to 3.4m b/d next year and Iran has countered with a request for 1.35m b/d should sanctions be slowly lifted.
An interview with Chris Finlayson in the FT today reveals little, his own guidance precedes him and shows that he is an all round good egg whilst he has promised that there will be no more nasty surprises from Australia or Brazil. Although I have yet to reveal my favourites for next year I think you can rest assured that BG will more than likely make the short list…
Trinity Exploration and Production
One stock which will make the short lists is Trinity, as you know I think that it has been overlooked and suffers from ghosts of its previous management, something the current team are putting right. Today they have updated on Galeota, where the TGAL-1 discovery is to be brought to development, also they intend to restart at the unfortunate Trintes after upgrading Rig 2 and intend to drill the B9 well. With a deal to take 100% in return for a royalty and a new oil sales agreement things are looking much more promising in Trinidad and Tobago.
The company has tripled its interest in Athena by buying a 20% stake from EWE for $8m in cash and $3.2m in shares. Having acquired 10% when it bought Lochard this makes it a meaningful deal for Tom Cross and should be interesting from here.
Another good result for the company as Platanillo-7 has been a significant success. The well flowed 3,052 b/d of 30.2 API crude on a reduced choke and is looking like a material increase in size for the field.
Last night in the NFL,
The Packers win in Chicago and will host San Francisco next week in the wild card round. The Bears have not made the playoffs in six of the last seven seasons. The Eagles win in Dallas and will host New Orleans on Saturday night. The Cowboys however have not made the playoffs in four consecutive years. The Bengals eliminated the defending Super Bowl Champions Baltimore with a 17-34 win. Cam Newton led the Panthers to the NFC South title with victory over the Falcons. This will be their first appearance in the playoffs since 2008. The Vikings edge out the Lions in their last game at the Metrodome. San Francisco also win in Arizona and the Chargers beat the Chiefs in overtime.
So much football at this time of year but the Gooners are at the top of the pile after seeing off Newcastle and are being chased by Chelsea and Everton, the HubCap Stealers have fallen recently not managing to beat Chelski or the noisy neighbours who are ominously close despite only just seeing off the Eagles at fortress Middle Eastlands.
Will cover the darts and horseracing tomorrow as I am feasting on all this sport but I must before I close say that I’m sure we are all hoping that Michael Schumacher makes a proper recovery from his awful skiing accident.