WTI $97.59 +22c, Brent 104.28 +$1.26, Diff $6.69 +$1.04, NG $3.83 -14c
There was a small rally in the oil price yesterday ahead of the expiry of the Brent contract today but traders tell me that it was a lot of puff and this morning there is already a 50 cent retreat. The EIA stats gave some hope as like the API numbers, analysts were wrong-footed and the forecast draw of 2m barrels turned into a build of 1.4m barrels.
Economic data in the Eurozone is poor this morning with the German economy contracting and France stagnating, not good for oil demand.
Internationally there is even more crude around to compete with Brent as in Libya the Ras Lanuf terminal re-opened after a year out of action and this morning a 670/- barrel tanker has sailed.
In what looks like a serious scoop for Daily Mail journalist Rob Davies he has unearthed the likely sale of a number of onshore blocks in Nigeria by Shell and its partners in SPDC Total, ENI and the government. Shell could make $2bn from this making BvB an even happier man.
A quick mention of 2Q results from Caza as generally these quarterlies are pretty meaningless. Not so for Caza where the recent drilling successes are streaming through to revenue and making a positive EBITDA. Revenue up 489$ y/y and an EBITDA of $3.3m against a loss last time but this was up 65% on the last quarter. NGL production also up nearly 500% y/y but again up 47% q/q.
These numbers are going to transform Caza which has paid of its Yorkville commitments and will now have enough cash to go out and buy more land and participate in lease sales, a total transformation from not long ago and will have drawn the attention of many people in the US. Caza is extraordinarily cheap and like a number of E&P companies at the moment, buying the oil on the street is looking significantly cheaper than an industry purchase so watch this space.
Its TipTV morning today so watch out for that later and I will supply a link with the company details afterwards. I will also look at further details of the Ophir figures, the Fastnet deal and the Providence announcement and write up if warranted. I am also seeing President this morning so I hope to have follow up on that too.
Yesterday I highlighted the Women’s Rugby World Cup semi-final and said it was too close to call between England and Ireland. With England running out winners by 40-7 it seems that beating New Zealand took it out of the Irish more than expected.
In the European Championships it was a great night for the UK with a 1-2 in the 10,000 metres and a number of other golds.
Tiger Woods has withdrawn from contention for the Ryder Cup which is a shame as he is normally worth a few free points when he has to play as a team…
And a big Clueless Cup draw for the MK Dons who have drawn Man Utd in the next round, United may be without Danny Welbeck who Hull City Tigers are bidding for, how the mighty are fallen…