WTI $44.91 +43c, Brent $48.17 +42c, Diff $£.26 -1c, NG $2.59 +2c
Oil prices remained calm which is more than one can say about some equity markets yesterday and appear to be ending the week on a settled note. The market was influenced negatively by the Japanese core inflation number being down by 0.1% but the Genscape inventory figure helped. It showed that stocks at Cushing had fallen by 625/- barrels, more than the EIA had called and the market appreciated that. Rig count later might steady the ship a touch more you never know.
Firstly, FOGL has announced that its Humpback well is seriously behind time, something that I alluded to a little while ago and because of ‘the resolution of equipment issues’ will now not be announced until early October, this is turning into one expensive little baby for someone…
Rockhopper has also announced that they will re-drill a new well on the Isobel/Elaine complex targeting the Isobel Deep reservoir. The original well was oil bearing but it was not logged or sampled for mechanical reasons. The new well will be 4km away and will replace Jayne East when the rig comes back from drilling Humpback. In order to compensate FOGL, Rockhopper and Premier will pay $10m, half for the Isobel lack of getting to TD and half for not drilling Jayne East, all subject to insurance claim success but will be a minimum to FOGL. More on this next week when I have spoken to the companies.
A short round up today as time is short but in the RWC there is the mouth watering prospect of England v Wales at Twickenham to look forward to.
In the footy there are no standout games but the clubs in the North East, already under pressure have what looks like a tough weekend as the Maccams travel to the Theatre of Dreams and the Magpies host Chelski. The Hammers host the Canaries and the Hornets v the Eagles will be an interesting affair.
The Japanese GP at Suzuka is practicing in the rain today but it will be interesting to see if Mercedes’s bad form last weekend continues.
Normal service on the blog will be resumed next week.