WTI $49.17 +16c, Brent $50.04 +32c, Diff -0.87 +17c, NG $2.40 +2c
Rather predictably the Opec meeting broke up without any formal agreement, no output ceiling suggested by the Saudis and no individual quotas thanks to Iran. In all reality there was nothing much to complain about, having seen $28, $50 is quite a result and with the KSA saying that they wouldnt ‘flood the market’ there is some downside protection into the bargain. It seems like Iran was fairly intransigent but that the Saudis softened their stance somewhat, the meeting broke up hoping that by November things will be better. And I expect them to be, the combinations of short term outages which have bailed out the market and the longer term supply and demand re-balancing should firm up the price as the year continues.
After the Opec meeting broke up yesterday the EIA inventory stats came out and perked up the market which had been a bit downbeat after the lack of definitive news from Vienna. Whilst the primary stock draw of crude was only 1.4m barrels, some way below the whisper of 2.7m the draws in both gasoline and distillates were a lot higher than expected. So, another overall drop in stocks and while still way higher than last year give enough reasons to remain reasonably cheerful about the market.
Yesterday I did a TipTV interview about the Opec meeting after which I talked about a number of stocks including, Hurricane,Falcon,Ithaca,Sound, Andes, Pantheon and Range, the link is below.
Tip TV interview: Oil bucket list 2016: Supply outages supporting oil
An extensive update from AMER this morning covering a good deal of detail about current operations across South America. Firstly, San Pedro in Paraguay has reached TD, ‘positive indications of oil and gas in potential reservoirs were seen in mud logs’. The company is now acquiring electrical logs to define the reservoir and flow characteristics, whilst this does not give a verdict either way it is modestly encouraging and by no means writes off the well.
At Platanillo the rig is going to Pad-5 to drill Platanillo-8, the first of two infill wells this year, after which it is off to Pad-2N to drill the first step-out well in the northern part of the structure which, if successful, will probably lead to another well there. After Plat 8 is completed a workover well will go onto Pad-5 to enhance production on the licence and prepare for the OBA. Finally seismic work is being done on the sand distribution in the N,U and T reservoirs which will be available at the end of June.
The OBA, which has been delayed by poor weather and local admin and is now sorted, final commissioning is expected by the end of this month, it has been quicker than expected due to earlier testing. At Coati they may do a long term test during the 3rd quarter of this year and the 3D seismic is under evaluation. Finally at CPO-5 in the Llanos Basin interpretation of 3D is under way and testing of the L4/5 sands is expected to start in the next few weeks. Overall things are moving with admirable speed considering the region, CEO John Wardle is happy that the company is showing progress in deploying the additional funds raised earlier in the year and with the OBA only weeks away costs will be falling rapidly as well. A major component of the bucket list and in very good nick.
England beat 10 man Portugal and even in a friendly that foul would have probably got a red card in a cage fighting contest. Woy is clearly playing a canny game here making the boys play like total wallies just to put off watching coaches who wouldnt have seen anything that scared them in the last week or so…
This afternoon Muzza plays defending champion Stan Wawrinka in the semi-finals of the French Open at Roland Garros, every chance for another go at Djoko should he get through.
Last night the Warriors beat the Cavaliers in the opening game of the NBA finals.
And of course its Derby day tomorrow and with the Oaks this afternoon a cracking couple of days at Epsom.
Finally, I am away for a few days and unless something astonishing happens the blog will take a short breather…