WTI $74.61 -$1.03, Brent $78.47 -84c, Diff $3.86 +19c, NG $4.24 -10c
There are a number of factors weighing on the oil price at the moment but none so powerful as the Opec meeting next week. It is easy to see that the whole affair will be a damp squib with no reasonable or believable accord which will mean that the oil price drifts further down. Having said that, the traders that I speak to are noticing that with buyers standing off the market is becoming increasingly short and I suspect that there will be covering of these positions pretty much whatever the outcome.
Before the meeting is the deadline for the nuclear talks with Iran and as that approaches the likelihood of getting a resolution seems to diminish, I suppose that the thought of another million barrels a day on the market isnt worth contemplating, either way Iran appears to feel it is being pushed into a corner…
The US Senate rejected the Keystone pipeline last night by just one vote although Barry was apparently going to veto it anyway, it will return…And the API inventory stats flummoxed the teenage scribblers coming in with a stock build of 3.7m barrels when the consensus forecast was for a draw of 1.2m barrels, you wouldn’t have thought it was that difficult…
The Oil Council
The Oil Council’s World Assembly just gets better and better, not only with its speaker line up but also as there are so many delegates there, the opportunities to ‘network’ for want of a terrible word is fantastic. Yesterday included a top level session on NED’s with a cracking panel headed by Lord Browne whilst later on another former BP CEO, Tony Hayward gave an interesting perspective on Iraq and Kurdistan. It is well worth seeking out the TV interview that he gave to the Oil Council and Proactive Investors after the show. And in the evening over 1,100 people attended the Gala Dinner and awards ceremony and to hear more speeches, some of which were lighter than over the last couple of days. All in all a great success and it seems a shame that its a year until the next one.
Cairn and its partners have completed the drilling on SNE-1 which, having already made a significant discovery, didn’t add to the find at the lower target depth. They will now go on and appraise the prospect next year and this should be very exciting indeed. I am hoping to have an interview with Far, one of the partners before long.
Shell have won a victory in the High Court of Bombay who has ruled in favour of them in the case of tax allegations, with more positive news to come for companies the new Government are trying to make inward investment somewhat easier.
And Wood Group has secured a five year extension to their Hibernia platform contract in Labrador.
Gulfsands Petroleum has secured a strategic relationship with Arawak for new business opportunities in the Middle East and North Africa. Arawak is also injecting $20m into GPX for Morocco work and general working capital.
Pantheon has confirmed that the first well on the Tyler prospect will be drilled in the first quarter of 2015 which is a little later than originally expected but not by much. The primary target is the ‘Eaglebine’ combination and also there is the old fashioned chalk to fall back on if that doesn’t come in. You know that i think that Pantheon could be one of the most exciting plays next year and next month I am hoping to interview the CEO on TipTV.
Keeping a surreptitious look at the phone last night as the ‘friendly’ took place at Celtic Park and the Scots were indeed friendly and failed to show up. Another couple of goals for Wazza who is marching towards to record books.
In the FA Cup, Conference teams Southport and Telford both went through to the second round, tonight sees the replay between Pompey and the Shots, very much the Hampshire derby…
And McLaren have said that they will announce their driver lineup next month, it seems like having spent all their money on a new engine and Alonso they will boot out Jensen as he is dearer than Magnesson but you gets what you pays for….