WTI $74.58 -3c, Brent $78.10 -37c, Diff $3.52 -34c, NG $4.37 +13c
Another quiet day at the office for oil traders, this time next week will be the Opec meeting and of course Thanksgiving Day. The Libyan Oil Minister has said that he thinks Opec will ‘scale back to their original 30m b/d target’ which, even if adhered to would not represent enough to placate markets, that would mean an Opec cutback of up to 1m b/d…
The gas price has been steadily rising as documented here recently and the bad weather predicted has certainly arrived in the USA. New York State, as well as New Hampshire and Michigan have been hit by heavy snowfalls of up to 6 feet in one day, nearly record breaking statistics.
The EIA inventory stats came out last night, the stock build was 2.6m barrels of crude oil, not as high as the API number but still the wrong sign for analysts who had expected a draw of around a million barrels.
And today sees the by-election in Rochester and Strood in the UK, former Tory Mark Reckless is favourite to take the seat for UKIP and historically these mid-term polls do provide such results.
The BBC are reporting this morning that Ineos is to invest $1bn in shale gas exploration and production in the UK. The aim apparently is to use it to find feed-stock for their Grangemouth refinery which would ‘transform’ its economics. Ineos has been very active lately in the UK, acquiring acreage in the Midland Valley in Scotland and I understand that it has participated in the 14th round of onshore licence applications. I mentioned the other day that this would be good for existing players onshore UK and that one couldn’t rule out further asset deals maybe with the likes of IGas post the Dart acquisition. More on this if I hear anything…
Alan Semple, CFO of Wood Group for many years has announced his retirement as of the 2015 AGM. Replacing him will be David Kemp, formerly of Trap Oil but at present CFO of Wood Group PSN. Finally the company has announced that they are creating a new group position of COO which will be filled by Robin Watson, currently CEO of PSN so its now a complete clean sweep of PSN directors in the ‘C’ suite up in Aberdeen. I wish Alan well as he has always been a great help over the years.
Sundry- Half baked Alaska….
I couldnt help noticing that the new venture for Tangiers is to take on a ‘significant’ interest in a project onshore Alaska. The press release is, as ever, full of optimism but i’m not sure how this will be funded, I cant believe that investors will stump up for another ‘half-baked’ deal by Tangiers…
The good news is that Jules Bianchi has come out of his coma and is being moved to a hospital closer to his family, whilst apparently still ‘critical’ it would be nice to think that this gives hope for a recovery.
That Hampshire derby I mentioned yesterday produced an interesting result with the Shots from Aldershot winning what is also termed the navy vs army grudge match beating Pompey 1-0.
And Wigan have signed up their new manager……………….Malky Mackay who is currently under investigation on all sorts of charges from his last job, what is it about football that makes Chairmen make such weird decisions?