WTI $94.07 -30c, Brent $106.30 -77c, Differential $12.23 -46c, NG $4.31 -2c
Its desperately boring out there in the physical, the futures and the companies, add to that MLK day and one is struggling for news. In thin markets, crude fell, with WTI trying at one stage to breach its downside support level of $93.48 and Brent closing dead on its level of $106.30.
The Iran discussions continue and with Tehran having completed its side of the bargain the US Treasury Department announced that it had ‘paused efforts to further reduce Iranian crude exports’ which is probably as good as it gets just now.
Do you get profit warnings from Chinese companies? Well we have had a reduction in production guidance from CNOOC for 2014, the market was expecting growth of 5-8% and we now expect 1-4%. The company are still predicting CAGR of 6-10% in the 2011-2015 window which may take some getting.
Proving difficult to see too much excitement in the cairn update although to be fair it is business as usual with nine exploration wells planned for this year. The Atlantic margin will see most of the excitement with wells to drill in Morocco, Senegal and Ireland with work continuing on Greenland. With seismic work happening on the acreage adjacent to Spanish Point that just leaves four wells in the North Sea to get on with. Cairn has net cash of $1.25bn and the holding in Cairn India is valued at around $1bn so the $300m buy back continues. The shares have traded in a narrow range between 250-300p for a while and its hard to see much changing on this one on the evidence available at present, it would be lovely to see another deal to make good use of that cash pile…
A couple of contract extensions in Africa this morning as Wood add around $250m to its order book. Wood Group PSN has a five year extension in central Africa for maintenance and construction management services whilst in Equatorial Guinea they have a $100m extension.
Great news, the Jamaican bobsleigh team have qualified for the Sochi winter Olympics, ending a twelve year absence for the reggae boys.
Last night Pepe Mel took over at the Baggies after having been sacked elsewhere, only in football… They got a draw against Everton who are challenging for that 4th Champions League spot. Sponsors Zoopla have ended their association with the club after Anelka’s recent gesture which is being investigated by the FA.
Tonight the noisy neighbours travel to Upton Park for the second leg of the Clueless Cup semi-final with a fragile 6-0 lead to defend from the first encounter.
And I don’t think I mentioned the other feat at the weekend when Ronnie O’Sullivan defeated World number 1 mark Selby after being in cracking form all week.