WTI $100.97 -70c, Brent $107.72 +15c, Diff $6.75 +85c, NG $3.81 +6c
Its going to be a struggle to fill the page this morning as all markets are quiet ahead of the wall of data and policy due from the US in the next three days. The oil price is very range bound and took no notice of the sanctions announced by Barry yesterday and traders tell me that apart from some short/long switching volumes are low. The differential has widened as Brent strengthened slightly but WTI fell after the API stats showed a bigger than forecast draw of 4.4m barrels, guesstimate by analysts was 1.5m draw.
It should be noted that what did change after sanctions was a 2.5% fall in BP stock which even Bo admitted would not be helpful, I suspect that owning 20% of Rosneft with no control has its bad days…
Results week continues and Total reported this morning that profits had fallen as production declined but materialisations rose.
Results here too but again nothing to report after a full update at the investor day. Board states that revenues and profits are in line with expectations.
President has bought out the remaining 50% of the Puesto Guardian field that it did not already own and assumed operatorship. Cost is $5m now plus $1.88m cash over two years plus a possible royalty dependent on production targets. Looking forward to a chat with John Hamilton as there should be some excitement to come and the shares are close to recent lows.
Another one where all the news in todays update is known by the market but I have a scheduled call in the next 24 hours with Rory and should be able to add a bit more after that. The company rightly says that it has been a ‘transformational quarter’ and details all of the activities including a good run down of what is happening at non-core assets. I’m sure some people will grumble that not enough is being done and not swiftly enough but Rome was not built in a day and I suspect that they are going as fast as is possible. The shares have unsurprisingly taken a breather after they went from 0.6p to 2.6p in a few months but that is only to be expected. Much more later.
At the C Games it was another good night for the home countries particularly for the English swimming relay team who beat Australia in a memorable duel. Seems like Mr Bolt isn’t quite so impressed though…
At the cricket England’s bowlers put their heads down and need to tidy up this morning, bowlers are apparently not keen on enforcing follow on which is understandable.
And at what is going to be a genuinely glorious day at Goodwood its time for the duel on the downs as Kingman takes on Toronado…
Finally I am off to TipTV, I know, two days on the trot, but I have a great opportunity for another CEO interview, today I am chatting to Philip O’Quigley of Falcon Oil & Gas. Yesterday I had a great chat with James Parsons of Sound Oil and if you missed it here is the link.