WTI $75.82 +$1.61, Brent $77.74 -18c, Diff $1.92, NG $4.02 +4c
With todays news that Japan has slipped back into recession coming at a bad time for the oil price news elsewhere in the sector is a bit thin on the ground. The lower oil price is supposed to benefit Japan more that pretty much any other country and the fall in crude and to a lesser extent LNG should be helping the economy at the moment. The IEA followed the EIA at the end of last week by being even more bearish that before saying that ‘ it is increasingly clear that we have begun a new chapter in the history of markets’ which is quite bold but then they rarely get anything right I suppose…
Today sees the start of the Oil Council’s World Assembly being held here in London and I will be going down there shortly and look forward to meeting many old friends and industry executives who are in town for the event. The Assembly is now generally accepted to be the premier international conference of its type and attracts speakers and delegates from companies and Governments all over the world. The two day event concludes tomorrow night with a gala dinner and most importantly the awards ceremony of which I am honoured to be on the judging panel for.
Company news is pretty thin on the ground at the moment but after the Baker Hughes board didn’t immediately acquiesce it seems as if Halliburton may be going hostile on this one.
President Energy has announced that the Lapacho well has entered the Santa Rosa sands and found evidence ‘consistent with background gas’ and it will update the market again in December. The find was hailed as a discovery in the higher section and the market reaction to this news appears to be disappointing. Until i speak to the company later on I cant add much so i will hold off until tomorrow.
The CEPSA bid for Salamander appears to be well above early expectations and indeed my valuation of the assets, it may well have seen off Ophir at that price and holders should take their arms off at this level…
IGas has announced that it has spudded the Ellesmere Port well and this is a most important development in the company’s analysis of its acreage in the North West.
The infernal international break saw England go one down at fortress Wembley before waking up and winning 3-1 in the end. Scotland beat Ireland 1-0 and Wales got a great draw against Belgium.
In the rugby it was not a good weekend for the home countries, England narrowly lost to South Africa whilst Scotland lost to New Zealand ‘B’ and Wales only just beat Fiji…Domestically there was a 71-7 win for Wasps against London Welsh in their last match at Adams Park.
The tennis fizzled out with Roger Federer calling in lame with a bad back so Muzza got a free lesson with Novac in the end…