WTI $82.09 +$2.09, Brent $86.83 +$2.12, Diff $4.74 +55c, NG $3.62 -4c
Last week I named it ‘short covering Friday as for the last few weeks this day has seen bears closing short positions ahead of the weekend, but today is slightly different. Last Friday we had just bounced off the low of the 50% retracement of the 5 year high and now the market appears to have settled down at least a touch. Despite the slightly odd EIA stats, which i believe are down to unexpected refinery activity, oil rallied again last night.
The reason was that it seems that Saudi Arabia output in September fell by 328/- b/d to only 9.36m b/d, a token fall you might agree but a fall nevertheless. This is surely only down to a combination of eastern refiners taking their feet off the pedal and sluggish demand but it was what the market wanted to hear so that’s final.
Today sees UK GDP 3Q stats and if you don’t want to be invoiced by the EU for £1.7bn for managing your economy well and being highly disciplined then Gideon should instruct his minions at the treasury to start putting out figures with a minus sign in front of them. Yes, the latest act in the Eu’s attempt to get UKIP voted in has singlehandedly been a success, they might as well have a swift saver on the party to win in Rochester with a few of those munificent expenses they pay themselves…
Chevron has announced that the Guadalupe well in the Gulf of Mexico has come in, encountering ‘significant oil pay’. Along with confirmation of the central North Sea find i mentioned yesterday it has been a good week for the exploration department at Beeps.
Ophir has announced that it has been awarded exploration and production sharing contracts for two additional blocks offshore Gabon. They will have 100% of and be operator of what are to be called Nkouere and Nkawa blocks.
Don’t forget that the results season swings into action next week with all the majors reporting third quarter numbers.
Its another big week in the Premiership with the standout tie being the visit of Chelski to the theatre of many conceded goals. I have genuine concern that Mr De Gea might be a very busy boy and with Chels being virtually unstoppable so far this season and United leaking goals everywhere it might end up being a cricket score. Elsewhere the Happy Hammers are in a top of the table clash (yes, that’s right) with the Noisy Neighbours at the Boleyn Ground.
Last night Spurs won 5-1 with a wonder goal from Erik Pamela i understand and Celtic won 2-1 whilst the Toffees got a bore draw, all in the Boropa Cup.
Finally it is El Clasico this weekend with Real playing Barca, after watching them on Wednesday it could be quite a game…