WTI $92.88 -$3.08, Brent $100.34 -$2.85, Diff $7.46 +23c, NG $3.89 -17c
The fall yesterday after the grotty economic numbers from the Eurozone was probably worse than even I had expected. Added to the demand worries were higher, nay record, US crude production figures as fields in Alaska and the Gulf of Mexico came back from turnrounds. Remember, September is one of those confusing months as the refining mix starts to change as do the seasons demands and of course can be highly dependent on the weather.
This morning crude has rallied a bit, Brent still toys with $101 but may come back again as news of another cease fire in Ukraine is announced. Inventory stats will be a day late this week after Labor Day but API numbers are expected to show another draw tonight of around 1m barrels.
Halliburton has announced that it has agreed a $1.1bn settlement that resolves damage claims from individuals, businesses and local governments following the Macondo disaster in 2010. The inclusion of local governments makes this deal different from that of BP who have not yet dealt with those organisations.
It is worth noting that BP have gone back to court and are still trying to remove the administrator of their already agreed payments system over a lack of impartiality.
In a speech last night, BvB has joined with a large number of high profile oil executives in urging the US Government to lift the ban on crude exports. Readers will know that I share this view and that of guru Dan Yergin who believe that this is a no-brainer but given not much gets done in a second term at the best of times it is likely still a long way off.
Circle Oil has announced its results this morning, revenues were up 13% but profits were down 36%, higher expenditure was to blame, increased operating activity, costs of senior debt and a reduction in cost recovery at Gemsa all counted. Circle has risen lately on the offshore Tunisia success but markets should wait for that to be confirmed before pushing the stock any higher.
Nostra Terra has announced the acquisition of 100% of WI in the Big Horn Basin in Wyoming for $1.2m. With 20 potential locations and total recovery potential of 13MMbo it is a big project for NTOG and I look forward to discussing it with Matt Lofgren at some stage.
The industry journos at Upstream Online are reporting that the sales agreement between ADX Energy and Gulfsands Petroleum has fallen through after GP ‘failed to pay’ its final consideration.
And I couldn’t resist this……..Plexus Holdings takes over Baker Hughes……..office and workshop space in Aberdeen only I’m afraid! Burgeoning work means that Plexus have had to significantly increase their footprint and have added space previously occupied by BH.
The cricket yesterday brought a whole new meaning to the word abject. India passed England’s appalling total with 20 overs to spare meaning they were on for double our total. Batting first, listen to this stat…..in the first 72 balls there were 57 dot balls, and after 23 overs England had scored 8 fours, after the same time India had scored 14 fours and five sixes! I’m afraid that Cook has to go, in his own best interests, test match cricket starts again in April so he gets a good break and looking at the one day programme it may get worse…Bring in Roy, Vince, Taylor and Bopara ( Yes that’s what I said!) and soon.
A big night for Muzza who takes on Novak tonight but its actually starting at 2am so I wont be watching!
In the Ryder Cup the US Captains picks are unsurprisingly Mahan, Simpson and Bradley.
In football, if you go to Wembley tonight take your boots, you might get a game and a final piece in transfer window is that Cleverley goes to Villa on loan..