WTI 56.39 +$3.10, Brent $60.32 +$1.89, Diff $3.93 -$1.21, NG $2.61 +8c
A swift blog this morning as I am out and about with companies and doing some work with the BBC on the Falklands.
The oil price certainly had a fair wind yesterday and those traders I mentioned who wanted Brent to go out with a bang and close above $59 were more than happy. Why did it bounce so much, only more of the IEA monthly I mentioned and for once, better inventory data.
The IEA report added to the bullish feel by saying that they were witnessing slower production growth than previously expected and that they were able to slightly increase demand numbers. The data from China I spoke of was added to by better,if short term, demand from India, South Korea and Russia although the agency cautioned that it was possibly temporary.
The EIA stock data showed that crude build was only 1.29m barrels, short of the consensus of 4.1m and haeding in the right direction. After the API stats the other bullish tone was in the gasoline data which again showed a significant fall in stocks as refinery utilisation picked up after maintenance and with the US driving season only just over a month away.
Results from Northern this morning are not good to look at and I will comment further tomorrow after a more detailed conversation with the company. Overall the bad seems to outweigh the good with modest news from Canada where oil is ‘behind the pipe’ and not yet producing anything like expectations. In Italy the company did receive two licence awards and farmed-out to Shell but again that wont move the gauge much. On the downside there are impairments which like others in the sector are inevitable but here totalling over $50m against French Guiana and Canada is disconcerting. The company say that ‘material development of existing projects is contingent on sourcing further capital’ which rather tells the tale, more tomorrow.
In the cricket it was another top order collapse with non-specialist opener Trott getting 4 and Cooke 13, however the position looks good for England and they should win easily.
Barca went to Paris and had a fine time, winning 1-3 with some good goals particularly from Suarez which wont please the scousers at all.