WTI $59.92 -5c, Brent $63.87 +17c, Diff $3.95 +$1.29, NG $2.86 -4c

Oil price

The FOMC meeting was as important as any marker for the oil price yesterday and the Fed seemed to lower growth forecasts and push out the rate rise markets are expecting. Accordingly the greenback fell and oil prices were in limbo. Of course the inventory stats were important too and the EIA numbers were a right royal mixed bag. Crude stocks fell again, by 2.7m barrels which was higher than consensus of 1.5m but stocks at Cushing actually rose which wasnt part of the plan. In products it was also not such good reading either with gasoline reporting a rise in stocks of 460/- barrels when analysts had forecast a further draw, refinery utilisation fell back from 94.6% to 93.1%, still quite a high number.

Tropical Storm Bill swept through the Gulf of Mexico and dumped more rain on Texas but it is as they say, blowing itself out and hasn’t caused any disruption to oil supplies.

Wood Group

Wood Group has announced what must be quite a big contract for Saudi Aramco, at least it is for six years plus two three year renewals and will employ 300 staff. For facilities in the Arabian Gulf including the establishment of an offshore engineering ‘centre of excellence’ at Al Khobar. The service stocks have been a mixed bag lately share-price wise and Wood has fallen back a bit after a strong run so far this year. There is little doubt that the 2nd quarter will have been the worst for a while but most companies are demonstrating significant resilience in the face of attempts by the majors to cut costs. With results coming in late August it is tempting to see how they look and of course half year trading updates may come in early July.

Egdon/EOG/Union Jack

News from Egdon that at Wressle-1  an extended well test is under way which will test the Ashover grit and then the Penistone Flags. These tests will determine the commerciality of the field and the best means to bring forward its development. I commented on EOG yesterday regarding its Irish assets which slightly complicate matters as they are still a very long way off but for Egdon things are more straightforward. Egdon has a very interesting drilling programme of conventional in the short-medium term and of course the shale potential for the longer haul. It is fully funded in these respects, has a good management team and looks to me to be an attractive option for investors looking at the UK for exposure to value-adding onshore plays.

And finally…

Whether or not New England win the series against the Kiwis matters not a lot, it is proof, if ever any was needed, that the armchair critics of our one day game have been proved right, just a shame it took about three years to be listened to. Last nights game was terrific and chasing 350 odd never seemed to be in doubt and to do it with six overs to spare was truly the icing on the cake…

The US Open starts today at Chamber Pot, the new course set in a quarry and providing apparently some unique challenges. Rory goes off favourite and one can never discount him winning, depends on which Rory turns up I guess…

News that Jamie Roberts will play in the varsity match this year, as after the World Cup he will be attending Cambridge University and then Harlequins, a long Oxford winning run needs to be broken somehow!

England’s women beat Colombia last night and progress through to the last 16 where they will play Norway on Monday night. Coming second in the group was clearly a cunning plan to avoid ze Germans who are hot favourites to lift the trophy.

At Queens Club, Stan the man, and second favourite went out yesterday and Muzza kept warm by playing in the doubles…

Over in Berkshire, Frankie rode his 50th winner at Royal Ascot and may well pick up no 51 on King of Rooks at what will be a very short price in today’s opener…