WTI $48.45 -74c, Brent $55.27 -86c, Diff $6.82 -12c, NG $2.82 -8c
The oil price looks like barring a miracle that it will have another down week, WTI has not only crashed through the $50 support but the $49 level too as a combination of stock build and oversupply gives the market the jitters. At this level WTI is now well over 20% off its June peak of $61.43 whilst Brent is at its lowest since the 2nd of April. Although the good economic figures from the US might have been good for product demand all they did was to firm up the dollar, not what oil markets like. Whilst on products, it is interesting to note that the EIA report that the retail price for diesel in the US is now lower than that for gasoline, $2.78 plays $2.80 respectively.
In an agreement announced yesterday, Turkey are to allow the US to carry out airstrikes against IS from its base at Incirlik in the east of the country.
Initial results today from the company’s Zingana well on the Bomono permit in Cameroon. I say initial because the company have only announced that hydrocarbons have been encountered in the target reservoir and that the well has been suspended and the rig is moving on to Moambe. There will follow a detailed log evaluation and the company, as previously announced, will drill, log and evaluate both wells before determining a testing plan. The company are also progressing technical and commercial work to evaluate possible development concepts and product off-takers where discussions are already ongoing.
Readers will know that I turned more positive on Bowleven late last year when the farm-out completed and the enormous value was confirmed in the company. Since then the shares have been all over the place but have yet to reward holders for their patience. Although these wells will add value to the company peripherally, it will be the other exploration and appraisal on the Etinde block that will add more significant value through its 20% interest and two carried wells. One of the reasons for the discount the company trades on is the uncertainty about what it will do with its cash pile, at the interim stage it reported cash of $155m and no debt. Whilst I have no reason to believe that it will do anything to disappoint shareholders I would have thought that it may be wise to consider buying a bit of production maybe to ensure a more balanced portfolio. I am not suggesting that Cameroon is the wrong place to be, indeed as you know from my thoughts on VOG I am a big fan, it might just alleviate any nerves shareholders may be having. I am hoping to meet up with Kevin and Kerry before long so more then.
Cuadrilla has unsurprisingly decided to appeal against the planning refusal at Preston New Road and Roseacre Wood in Lancashire. I say unsurprisingly because in the former, the planning officer recommended approval and in the latter he only didnt due to minor traffic issues. The logic seems to be that if the decision is overturned at appeal the spineless Councillors can at least say to the electorate that they did all they could…
A huge win for the Hammers last night against the mighty Maltese Birkirkara, after tying 1-1 over the two legs the Boleyn boys wrapped it up 5-3 on pens, as I said, a huge win….
England’s women copied the men by losing the second in their Ashes series by replicating the batting collapse technique but also against hot favourites they may have a better chance in their series.
Its looks all wrapped up for Froomey to win another TdF although it has to be said that a lot of the oppo has disappeared one way or another.
It’s back to F1 with the Hungarian GP on Sunday which will be a tribute to Jules Bianchi, off the track word is that Bottas is off to Ferrari at the end of the season and that Jensen is the favourite to take his place, how good would that be?
Tomorrow sees the King George Stakes at Ascot where Golden Horn will aim for another win in such a great season, although some contenders have dropped out leaving Frankie on board a warm favourite, it will rain for a day at the Berkshire course and change the going one expects.
Tonight sees the start of the three day ‘Anniversary Games’ in London and such stars as Bolt, Farah, Ennis-Hill, Rutherford and Rudisha will compete. Although Bolt has been unfit he will be popular and of course anything Gatlin records doesnt count…
I’m off to the Solent with the old crew (minus Mr Ogden out there in Houston, Texas) and will watch the Americas Cup yachts being put through their paces hopefully in better weather than this…