WTI $61.43 +$1.29, Brent $65.70 +82c, , Diff $4.27 -47c, NG $2.89 +4c
Another short blog as not much to report from the crude market or the equity version.
Oil prices firmed after the EIA inventory stats franked the stock draw by the API with a fall of 6.8m barrels. This was the biggest draw for nearly a year and the sixth straight week of decline taking around 4% off stock levels. With such decent draw the refinery rate was sure to be high as in previous weeks they are almost flat out, indeed on the Gulf Coast refinery utilisation was 98.4%, surely a record.
Petrofac has announced the award of a contract in Oman this morning from the PDO. The contract will last for around 4 1/2 years and is worth a total of around $900m of which about 25% is for professional services, by which I assume that the remainder is for procurement and commissioning of management support services on an incentivised basis.
Ophir has reported that its audited reserves and resources numbers confirm management estimates. They say that the company has over 1bn boe in net 2P and 2C resources. I dont thin k that there has been much doubt about the number but proves a comforting base and a strong and well diversified portfolio.
Northern are back in the news again today as they are restarting their Alberta 100/16-19 well. It will produce at between 75-100 b/d and at $55 WTI oil the netback is $30 per barrel after royalties. Northern expect the 102/15-23 well to be restarting in Q3 of this year.
Just as we feared the Wally with the brolly has been awarded a multi-million pound contract to manage the Magpies. Having failed at places from England downwards and only recently moved on at Derby after failing to make the play-offs, it proves that in football a job really is for life…
But to watch some top footy and a few hair-raising tackles head to Chile for the Copa America and see the likes of Neymar, Messi and James Rodriguez in action…
I hope that those of you who got an invitation enjoyed the parties this week at Jefferies and Argus, me I’m treasuring my invite to The Oval for tomorrow!