WTI $77.19 -$1.59, Brent $82.82 -$1.96, Diff $5.63 -37c, NG $4.13 +8c
After the news that i discussed yesterday regarding the Saudi pricing formula the market tested new lows and following indifferent economic stats from China and worse from the EU oil has taken flight again, testing new lows and more importantly key support this morning. As I write, Brent is at $82.04, below the 50% retracement from the 5 year high and closing below this level would alarm chartists. Even a moderately good set of inventory stats from the API last night showing a fall in stocks of 639/- barrels versus expectations of a 2.2m draw couldn’t help.
Saudi Oil Minister Ali-al-Naimi is off the Venezuela and Mexico for a pre-Opec chat, not sure he will get much of a welcome.
Hunting have released an IMS this morning which explains the radio silence from the company to my calls recently! However, like the US service majors last week the mood at Hunting is upbeat and they say that ‘activity in the US remains strong offshore and onshore’. Europe is predictably weak owing to poor activity in the North Sea but both Asia Pacific and the Middle East are positive.
The company expect a further year of growth with industry levels of investment is high and business momentum is strong. With their own capital investment programme on track for completion in the next nine months Hunting is looking robust in these difficult markets and remains my pick of the UK quoted stocks although the current market will not give them any credit for a while. More after i have spoken to the company, later I hope.
San Leon’s Kety well in Poland has come in dry but not without hope as it was the lack of a seal wot done it.
Short blog today as I am at the Oilbarrel, will write up anything of interest tomorrow but looking forward to seeing Trinity and Faroe.
All rather odd in Europe last night as the Gooners managed to surrender a three goal lead against Anderlecht ending up 3-3 whilst the HubCap Stealers did indeed play a junior team who only lost 0-1 to Real Madrid, they had better win on Saturday!
Tonight the Noisy Neighbours host CSKA whilst Chelski are at Maribor.
And Jimmy Anderson is out of the Tour of Sri Lanka which is great news all round, shame Captain Cook cant pick up the same injury…