WTI $51.43 +$2.22, Brent $59.19 +$2.71, Diff $7.76 +49c, NG $2.67 -5c
Its all about the Yemen, as for the first time for a while a good old fashioned geo-political flare-up adds five bucks to the oil price. Indeed, at one stage yesterday Brent nearly negotiated $60 but came off at the end and today its $50 and $58 for the pair. This is because people have worked out that there is only the slightest risk of any supply disruption from the Middle East as a result of this jousting. By now, as they did with things like the rig count, even the most amateur of commentators (not you Marcus, you are such a pro…) know what and where the Bab el Mardeb is and how it too can de diverted around. Not that the Houthi arsenal contains anything serious enough to stop shipping at 50 miles…one hopes.
Deal or no deal?
In all this and despite much chatter about Iran it should be noted that the next deadline is only four days away, so by Tuesday there will have to be either a deal or a further pushing of the debate into the long grass, the banker offers you short shrift and no surprise, despite optimism there are still many hurdles.
In a couple of hours we will see the latest Baker Hughes rig count, unless it is a massive surprise one way or another I have a feeling that the market is becoming rather inured to the process and oil will end up, up on the week.
More news today from Wressle-1, the well that keeps on giving. This time, zone 3a in the Penistone Flags has flowed 33º API crude oil at an average rate of 77 b/d perforated over a 7.5m interval. This makes the licence valuable, with the low onshore costs this will be economic at todays prices and I expect further testing and longer term production set up. Hydrocarbons from three separate reservoirs is well worth the while and with plenty of other wells to drill all the participants will be keen to get it under way.
I get the impression its a bit of a guilty secret liking Parkmead and its mercurial boss but I do rather like what he has set up and these figures prove that he is on the right track. Usual caveat at the moment is that these numbers are deep history but they do serve to show what cross Tom is up to. Good progress has been made in the Netherlands with a further gas discovery and in this oil price chaos its rather good to see. The 28th round was kind to them where they got 9 new offshore oil and gas blocks and those near the PDL development as it is now monickered, will have the potential to add significant value to the project if they come in. With contingent resources up 142% and cash in the balance sheet of £39.4m Parkmead is relatively strong and most of all has a very strong management team who know what they are about and should come out at the other end bloodied but unbowed.
UK Stock Market Awards
I was lucky enough to be invited to this glittering ceremony last night and in the ‘Best Oil & Gas PLC’ award the winner was Amerisur Resources so many congratulations to the team there. Worth a mention were runners up Sound Oil and Premier who are both bucket list favourites, as is Amerisur. Elsewhere Liberum won a gong and new outfit Camarco who are very strong in oil & gas were runners up in the ‘ Best Adviser-Financial PR’ category.
After last weekend it was always going to have a feeling of after the Lord Mayors Show to it. especially as we have England v Lithuania at Wembley tonight. Will we see Harry Kane, almost certainly and lets hope the footballers havent been catching anything from the cricketers, which reminds me that when Phil Tufnell once had a cold Sir Geoffrey said ‘whatever it is its not catching, boom boom…Also worth noting that Falcao can score as he bagged a couple for Colombia or as the cricketers call it, a pair…I’m here all week…
Its the CWC final this weekend with co-hosts Australia and New Zealand going head to head, not much in it but the Kiwis are playing away for the first time I think which might make a small difference.
Back to F1 as we are in Malaysia for GP no 2 and this morning after extensive trouble with his car Lewis looked in bad shape then came out and finished top of the pile which doesnt bode well for the opposition although Ferrari are looking quite strong.
Back to club rugby but there are some big fixtures as the Wasps go to the Saints, the Quins visit Sarries and the Tigers host the Chiefs…