WTI $104.41 +$1.75, Brent $109.99 +$1.38, Diff $5.58 -37c, NG $4.64 -7c
Things are beginning to hot up in the oil market and whilst it is a desert for most economic news this week the oil market has picked up on the Chinese export stats which beat the whisper. I would note that as previously mentioned, import data is telling me that the country is still buying for stock or some strategic reason. Should this continue during the summer as I mentioned yesterday, Opec has little spare capacity without help from Libya and Iran to name but two.
Another good contract from Kentz this morning this time from long time customer Qatargas who have awarded work to the value of $125m for their plant as Ras Laffan. This is an EPICC contract which strengthens their capabilities in LNG train lifecycle enhancement and also adds to the company’s development in the EPC and ME parts of the business. The Kentz share price has rewarded my faith in the company by bouncing nicely off 660p, a place which for its order book and conversion success rate it should never have got to. I still feel that there is upside well beyond the 750p high and my target price of 900p is eminently achievable.
Another bad day in court for BP who lost their latest appeal, this time they wanted to stop payments in the Macondo case whilst the various appeals were being heard. It was more like no can do than Macondo and the payments keep on going out, and the metre must be overheating on the lawyers bills.
President Energy who are about to spud in Paraguay have added a 5% interest to their stake in the Pirity Rift Basin there and at no capital cost to the company. Readers will know that I have been a fan of President for a long time- from 15 to 50p- and with a market cap of £134m it is a serious operation and with the shares at 33p and an exciting drilling season ahead of them I still rate the prospects very highly.
I’m off to do TipTV this morning so keep an eye on that at 1045 where I will be covering another four very interesting companies. After that I am meeting the new CEO of Tangiers Petroleum who is going to talk me through the Morocco well which might be a company maker or breaker…
With World Cup fever starting to build the first injury worry has come from the England camp as Stevie Gerrard has a groin strain….
At Queen’s Club both Dan Evans and James Ward won their opening matches and join Muzza in the second round, with beautiful weather forecast for the week it will be a good warm-up for Wimbledon.
And sad to see the news about Rik Mayall yesterday, a man for a certain vintage but brilliant, checkout the New Statesman speech about no taxes, free electricity and free housing, might be uncommonly 30 years ahead of his time eh…?