WTI $49.88 +$2.03, Brent $50.61 +$2.03, Diff -$0.73 n/c, NG $2.86 -3c
With a skip and a jump the oil price is almost back to pre-brexit levels, this is mainly down to better inventory stats this week where both organisations saw a draw of around 4m barrels. In the background there are a number of machinations but the rise in refinery utilisation to 93% ahead of the Independence Day celebrations is probably key. Elsewhere a fall in imports helped as did US production falling by 55/- b/d and Iraq output down by 60/- b/d last month. With the Norwegian strike still imminent pressure is on the upside.
A very tame update from Wood this morning, no change to EBITA guidance of a 20% fall from last years levels and that the company is benefiting from their model of an asset-light predominantly reimbursable business model combined with significant overhead cost savings.
A trading statement and operational update from Tullow this morning but not much to add here either. Production guidance is down again but the problems at Jubilee have been well telegraphed and should not be a surprise. Better news is that TEN remains on schedule and under budget and will produce first oil in 3-6 weeks time as forecast…The problems at Jubilee appear to have been at least sorted and production stabilised at 90/- b/d. Rather tongue in cheek I suspect, they say that the decision to go with two separate pipelines brings ‘clarity’ to both projects and also that they will have a new exploration well programme in Kenya in the 4th quarter. TLW was a new addition the the bucket list in January and so far is up 63% since then which ranks it in 5th place and will very much remain there.
Independent Oil & Gas
News today that IOG is to commence drilling on the much talked about Skipper well in July. Primarily an appraisal well to get the oil samples there is an element of exploration as they take a quick look a bit deeper down while they are there. Success here would lead to an FDP which would convert management estimates of 34.1 mmbbls of contingent resources on a 25% recovery rate into 2P reserves.
Another magnificent innings by Jason Roy last night saw England chase down 300 odd in 42 overs rarely breaking a sweat which shows just how far they have come.
Tonight’s match in the Euros is Poland v Portugal which looks tough to call, bars all over England will be heaving with vodka swilling or port drinking natives…
And some very learned acquaintances of mine have had a most interesting wager with regard to the next England manager. Ian Wright has been talking a lot of sense from the sofa and its only a matter of time before the FA swallow their pride and go with someone like him or Allan Shearer who was laughed out of court the last time he applied. The 100-1 about Wright will surely come in as these wise prophets are taken seriously…