WTI $39.97 -$1.11, Brent $39.97 -84c, Diff $3.03 +27c, NG $2.19 +1c

Oil price

So, nothing changes at Opec with the Gulf states maintaining their unequivocal stance that persistence with the policy will come right in the end.  If they are right then one thing is for sure, we have a pretty dire few months ahead of us with huge world stockpiles, full-on production from those who can and soon to be added to by those who can’t but will be able to soon. With little sign of any demand pick-up until 2H 2016 at the earliest the equation looks very much like lower for longer which is the current phrase of the year.

With the rig count down 7 at 737 and oil down 10 at 545 US shale is undoubtedly hunkering down and with US production starting to fall there is some light at the end of the tunnel. The only other light is a long way down the tunnel, with $300bn of capex cuts the majors have set up a massive spike, when will it come, 2H 2016 or later…?

Sundry

Two modest bits of good news this morning, IOG has announced that it has finally got together its financing for the Skipper well and it will spud early next year. This is finally good news for the team which they deserve and hopefully they will emerge from their period of silence and I will report back after that.

Thalassa is an old favourite and today it has announced that it has a new contract with ConocoPhilips on Ekofisk and that revenues are going to be better than had been expected, hopefully I will see the Chairman before long.

And finally…

The Premiership again provided surprises although it says a lot that Chelski losing at home to the Cherries was not one of them…The Noisy Neighbours lost at Stoke and the HubCap Stealers managed to lose to the Magpies, not easy when on such a winning run. The Foxes are jubilantly at the top of the table with the Gooners snapping at their heels while the Hammers nearly had a historic win at the Theatre of rather boring dreams…

Catch the Tingle Creek, if you did then you may be able to tell me why a horse can barge another out of the way in mid air and keep the race?