WTI $106.17 -66c, Brent $114.12 -69c, Diff $7.95 +40c, NG $4.45 -8c

Oil price

After comments yesterday from US Secretary of State John Kerry that the US support in Iraq would be ‘sustained and intense’ if Iraqi leaders unite, the oil price has had a technical correction last night and again this morning. Export figures for Iraq in the last few days also show that there is no loss of exports from there at the moment. It should be said that the situation remains fragile as ISIS have apparently made more gains in ground and at the refinery under siege.


Worries yesterday that Petrofac might warn again with its trading update this morning were offset by a largely positive statement. Previous guidance of net profits of $580-600m remain intact but as expected will be 2H weighted. The order book is better than expected, wins of $6.8bn so far this year have lifted the backlog to $20.1bn, up from $15bn at the year end. ECOM and particularly EPC is doing very well but EIS is a bit mixed, whilst the company say they are focussing on improving operational performance with strong demand for their services they say that they are concentrating on areas where synergies are highest. As I said yesterday the market is still a touch cautious on PFC at the moment but in its core EPC business all is still going very well, incidentally, Iraq is less than 5% of its backlog.


Better news from Tullow this morning as the Ngamia-2 well comes in with oil and gas pay as well as identifying a new fault block trap to the north of the accumulation. Early days but still opportunities to deliver on the company’s faith in Kenya.


Phew! Changed my recommendation just in time as BLVN has announced a farm-out of Etinde this morning. I will not be able to listen in to the call later but will catch up this afternoon, until then I would say that it is a good deal by the looks of it at $250m and they are in a stronger position as a result. Followers may feel that they have given away some of the potential upside but the bird in the hand as they say, more later.

And finally…

Its a miserable day to be an English sports fan I’m afraid as by this evening humiliation will be complete.

In the World Cup, Brazil cruised past Colombia with Neymar scoring more goals and the Dutch beat a spirited Chile team. Tonight England play Costa Rica and with Frank Lampard and Milner playing its enough to make one cry.  I’d like to finish the night on a good note. For all you lot who have purchased an England top for the world cup, you should still fall in the 14 day returns guarantee.

In the cricket England were appalling which is flattery really and this time there is no English Kev to blame it on…At 57-5 overnight chasing 350 even the night-watchman managed to get out three balls before the end but that was the least of our problems. Bringing back a  previously losing coach who had been sacked once before not looking so clever now…

Wimbledon started yesterday, and Andy Murray followed in the footsteps of the England football team by avoiding the net as often as possible…