WTI $97.50 +6c, Brent $108.67 -$1.03, Differential $11.17 -$1.09, NG $4.41 +7c
The mood in the states regarding tapering, or lack of it, is providing some concern to commodity markets at the moment although to be fair oil is suffering less than most. Last night the House passed its vote on the Finance Bill comfortably and it should go to the Senate next week.
WTI is still performing better than Brent, partly as a number of pipelines will become operational early in the new year thus moving more crude from Cushing to the Gulf and partly due to the situation in Libya. I will believe it when I see it but the authorities over there are adamant that this weekend will see the reopening of facilities which could add 500,000 b/d back onto the market. (Currently producing only 100,000 b/d)
It is worth looking at the Natural Gas price and the chart on the front page of the website, www.malcysblog.com as the winter weather has led to a not unusual bout of strength pushing the price towards $4.50.
The eagerly awaited Annual Energy Forecasts from Exxon are out and the fun is often to be gained looking at estimates out to 2040. Demand for energy is expected to be up 35% 2040 on 2010 of which oil demand will be 25%, would have been 100% without energy efficiency. That oil will come from US tight oil, NGL’s, Canada, Latin America, Middle East and Africa to name but a few but the fastest growing fuel source will be natural gas.
Unloved and misunderstood, big Sam is looking for investments further afield and has become an ‘International Strategic Investor’ in Ireland where its consortium is buying just under a million customers for 1.12bn euros. This will add to the 15.7m British Gas customers in an ex-growth market and although Centrica is putting money down in unconventional opportunities in the UK, the Millipede effect is putting off investment plans for the time being.
Rig problems have led to a delay in drilling in Romania for Petroceltic. The Muri dava-1 well will now not be drilled until late in Q1 2014.
Some non-executive additions at BG as Pam Daley joins from GE and Martin Ferguson also joins having been the former Australian Minister for Resources and Energy, Aussie politicians eh? Dr John Hood takes over as Senior Independent Director from Baroness Hogg.
Gulf Keystone Petroleum
Its that time again, GKP in Court for the final judgement and allocation of costs. I am not going to get involved in any predictions, I mean after the furore that was caused after the £17.5m on Monday! Anyway, I’m standing by the Twitter machine reading all that Simon Fisher can throw at me…
England reverted to form after a promising start, having got the danger men back in their hutch they proceeded to bowl complete pony and the chances from here aren’t obviously good.
In the Boropa Cup Spurs and the Swans won but Wigan under their Manager of the month lost, the head-hunters will be out looking for the next manager as we speak…
Some good matches in the Premiership this weekend, the noisy neighbours host the Gooners which might see how good they really are whilst on Sunday the HubCap Stealers visit White Hart Lane. Meanwhile the Super Hoops from Loftus Road are moving up to Northwest London at a new stadium.
Paul Di Resta appears to have been replaced at Force India by McLaren reject Perez, note the BBC website suggests Di Resta upset his own team, getting Perez wont change much then…
And after my horrendous error last week, the weekend has another round of Heineken Cup matches, will Connacht manage to beat Toulouse at home after a stirring win last week?