WTI $102.48 -16c, Brent $108.79 +39c, Diff $6.31 +55c, NG $4.70 +6c
It’s a quiet, sunny, June morning and with few announcements the market is drifting in low volumes. World leaders having conducted G8-1 yesterday are gathering on the beaches of Normandy to remember the 70th anniversary of D-Day.
The economic situation in Europe is deemed still difficult enough for the ECB to announce stimulus measures yesterday and today we have non-farm payrolls in the States, I have seen numbers around 200,000-220,000 quoted.
Next week sees the six-monthly meeting of Opec and commentators are preparing for the usual frenzy, I suspect as usual nothing much will happen. The last meeting worried that the cartel was producing too much with demand from the western economies down and China’s prospects uncertain. Whilst that has only ameliorated a bit, demand has picked up and increases in production have not yet materialised giving the Ministers a different problem, viz will there be enough slack in the system for the 2nd half of the year. I have said a number of times that the market needs the increased production from Iran, Iraq and Libya as well as non-Opec countries particularly in the summer when power demands in the Middle East, particularly Saudi Arabia curtail exports.
A glimmer of hope for BP yesterday as the Chemical Safety Board enquiry highlighted the significance of the blowout preventer in the accident. BP continues to say that blame should be shared amongst multiple parties and that Transocean was responsible for the BOP maintenance.
Final results today from RKH but as ever nothing to add as all the news has been in the market for a while. In the period further work was done on Sea Lion and the TLP concept was approved and the company ended the period with cash of $247m. Since the end of the period the rig has been secured for the drilling campaign next year and the company has started to diversify geographically by bidding for Mediterranean Oil & Gas.
Readers know that I have been interested in activity in the Horn of Africa for a while, a number of highly respected oil industry figures are putting a lot of capital behind the area despite the enormous political and security issues. Today Soma announce that their seismic programme offshore Somalia has been completed and at 20,500 km lines of seismic data over a 122,000 sq km evaluation area it is quite a job. Their were no security or HSE issues in the process and the work on the data will continue for the rest of the year.
Another packed weekend of sport and the World Cup hasn’t even started yet!
In New Zealand the England B team take on the All Blacks, I say B team as 14 players were unable to be selected due to last weeks games and that doesn’t include injuries etc.
Its Derby Day tomorrow and apart from the odd thunderstorm all looks set fair, Australia is a huge favourite for the race but don’t be put off, other horses are available! Today sees the fillies in action in the Oaks and I was disappointed not to get any tips for the race after my plea yesterday, come on Slips, do your duty for Dave!!
Muzza takes on Rafa in the French Open Semi-final this afternoon so best of luck to him.
The GP circuit heads off the Canada and the rivalry between the Mercedes drivers is keeping the excitement going, who will triumph this time?
England’s cricket selectors have chosen some new faces in the squad to play the disgraced Sri Lankans at Lords next week, Jordan, Ali and Robson may get debut call-ups. In the T20 Blast Freddie Flintoff has not been selected by Lancashire for tonight’s roses match.
Enjoy your weekend…