Capture

WTI $92.53 -27c, Brent $97.00 +5c, Diff $4.47 +32c, NG $3.97 +6c

Oil price

A quiet day in the oil markets with little further data and in the US a touch of the jitters, as indifferent durable goods orders and an increase in jobless claims panicked Wall Strasa. Today the UK Parliament votes on whether to approve joining the international strike force against IS, it should get through and get DC ‘purring’.

Independent Oil & Gas

I am keeping a watching eye on IOG which has some interesting potential longer term. I have met with the management and they seem pretty switched on and a good business model. Today they have announced that they have an MOU with Ping Petroleum for the joint acquisition of producing assets in the UKCS. If IOG drill Cronx and Skipper next year that will generate significant tax allowances that could be offset against production revenue. Accordingly any such acquisition would reduce substantially the amount of funding required and is eminently sensible industry practice. Keep on the watchlist for next year…

Mexico

Readers know that I have been watching the situation in Mexico for a long time and am convinced that it will be an area to keep a close eye on in the next few years as 76 years of monopoly comes to an end. A number of companies have been in Cancun this week expressing what might be described as cautious optimism, BG ‘the price is huge’ and BP ‘it is exciting and early days’ being quotes I have picked up on this morning.

Sundry 

I am seeing unconfirmed reports in the industry press that BP has lost a court ruling in the US that indicates that they are unable to recoup any compensation payments already made…

San Leon has announced the spud of its Kety exploration well which is the first of a three well programme in the Karpaty area of the Permian Basin. I had a long session with Oisin and Joel at SL yesterday and will write in more detail later but I still think that there is scope to make money here as one way or another the area still offers chances of success.

Next week promises to be another exciting one not least for holders of Range Resources as figures are due on Tuesday. As with most things its not the results but progress on the clean-up operation, production in Trinidad and the deals such as that with LandOcean. The shares have neatly halved from their peak this year but are still twice as valuable as they were at the low, I look forward to next Tuesday with some interest, a turning point indeed.

And finally…

A big weekend of football with two key derbies to look at as one takes place on Merseyside and one in North London, the early season form guide doesn’t help at the moment at all. LvG is down to his last £150m of players but has only one defender, if the Hammers play like last week it might be a high scoring affair…

In the rugby it is still exciting, probably the pick being the Saints vs Bath which should go to the home side despite the Bath performance last week. I have to mention my old friend Tom Howell, legendary broker who turned up on TipTV yesterday punting rugby bets, whatever next…!

In the cricket it is still exciting as now Lancashire only have to win the game, I say win as it could easily go either way…

Derek Jeter won his final game at Yankee Stadium last night with a game winning hit against the Orioles. Jeter will end his career against the Red Sox on Sunday after the Yankees failed to make the playoffs.

And of course it is the Ryder Cup, we have been waiting two years since Medinah and the atmosphere is electric, as I write it is very tight indeed…