WTI $49.98 -8c, Brent $49.59 -15c, Diff -$0.11 -7c, NG $1.96 -3c
It’s a big weekend in a lot of ways but no greater than in the US where it is Memorial Day on Monday which of course signals the start of the driving season and my chance to wheel out a few stats. Over the weekend the AAA predicts that more than 34m Americans will travel at least 50 miles, 2.1% up from last year and the best year since 2005. I should remind you that this year annual mileage is running at 3.16tn miles or 263bn miles a month.
Next week sees the Opec meeting and the likelihood is that everything will remain the same although as ever the occasional curved ball may be thrown. I see very little chance of the Saudis changing policy particularly with $50 oil and outages all over the place, not to mention domestic demand picking up as we go into the summer. As for Iran they will remind Opec of its commitment to allowing it to go back up to previous export levels, still somewhat higher than current output. The only way of contriving a settlement seen to be positive could be if Iran is already producing flat out, then it could make a political gesture of some sort.
Cape has announced a Gulf Region Master Service Agreement award from GE on a one year basis renewable annually. The contract covers 64 power facilities in the UAE, KSA,Oman, Kuwait, Qatar, Bahrain and Iraq. For Cape it is its first multi country, multi discipline award in the region and covers access and insulation initially hopefully followed by further disciplines in the future.
President has announced an Argentina drilling update where at its Puerto Guardian concession production is running at over 500 boe/d twice last years amount. Three more wells are planned by the end of July which should be on stream in the second half of this year. Peter Levine’s IYA Global continues to provide the funding. I wasnt on the recent analysts visit to Argentina but remain positive on President.
Genel has announced that some payments from the KRG have been received for April but I for one am not finding it easy to tell if payments are being made in full, certainly it looks like the backlog of debt is building again…
And IOG has announced results but for them the key this year will be drilling the appraisal well on Skipper which by creative funding has enabled the company to have a 100% WI.
For those of you who do like to hear my interviews I did my first Podcast for Vox Markets this week and the link is below and will also be on the website.
Vox Markets is an exciting new platform for research, prices and chat and I am very happy to be a contributor with the blog and the podcast.
After a bit of a paucity of sport in recent days this weekend provides a massive Bank Holiday Blockbuster catering for all tastes. In Paris Muzza plays Karlovic in the French Open and after a stuttering start with two five setters nothing can be taken for granted.
At Chester-le-Street England take on Sri Lanka in the second test match of the summer, as I write England have won the toss and rather surprisingly elected to bat.
Before we head to the Euros it is the last weekend of league footy in Europe, all the playoffs for promotion, the Champions League final tomorrow between Real Madrid and Athletico, England play Australia in a friendly up at Sunderland and Mourinho signs a three year contract with the Red Devils…
Formula 1 has its showpiece event in Monaco, my invite must have been lost in the post, Lewis has a very poor record here whereas Rosberg’s is good. Team McLaren has said that it will be Jensen’s last season as they intend to sign their own test driver Stoffel Vandoorne next year.
Rugby has the Premiership final with Sarries taking on the Chiefs tomorrow and on Sunday England play Wales in a pre-tour of Australia friendly if ever there was such a thing between these sides.
The summer of golf is under way and the BMW PGA Championship title is up for grabs, Danny Willett leads the way overnight.
Finally, I’d encourage everyone to support RAFTs charity gala dinner in The Mansion House on 1st November, to celebrate the 150th anniversary of the London Fire Brigade. An ideal event to take a table at in order to banish those winter blues, especially given their links with the oil and gas sector and the work they do helping burns victims. www.raft.ac.uk/Event/150-years-of-lfb-charity-gala-dinner