WTI $42.77 -25c, Brent $44.98 -41c, Diff $2.21 -16c, NG $2.62 -13c
It’s the middle of the summer holidays and not much is going on, results start coming through next week for UK companies. The oil price drifted, nobody believed the talk of a special meeting of Opec, nor should they however much Venezuela tried to bull it up. After hours the API stats showed another build against a forecast draw, and crude is another 60 odd cents off the prices above, lets see what the EIA brings.
Although almost impossible to see, and with advisors kept ‘close’ I am still a fan of Parkmead and it is still in the bucket list. Cross Tom tends to deliver value and although the market worries about PDL economic sensitivity and its debt, I am tended to give it the benefit of the doubt, for the time being…
Today’s announcement from the company is positive, it has doubled its stake in the Polecat and Marten fields in the UKCS and are now 100% owners and operators after previous partners Atlantic depart the region. Being near the aforementioned PDL makes it valuable as the hub should bring down costs substantially. Total contingent resources rise by 39% to 59.1 m boe at next to no cost. They also say that Diever continues to perform above expectations and that low cost gas production, with more on the way gives vital cashflow.
The FT reports this morning that BP are in the process of selling one of its biggest Chinese investments, the 50% holding in the Secco petrochemical plant in Shanghai. Sinopec holds the other 50% so dont expect many favours when it comes to an offer, analysts suggest $1-2bn……
Ithaca Energy appears to have come to a temporary halt in moving FPF-1 from Gdansk to Stella, inclement weather is stopping it moving from Sweden through the Denmark straits but I am reliably informed that it will be on the move by Friday. Watch this link https://www.vesselfinder.com/?imo=8772128 and click on ‘track’ on left hand side, zoom out and see how its been moving around in circles!
Another middling day for Team GB yesterday as many medal chances went west in canoes, on horses and in the gymnasium. In the pool all is forgiven as Siobhan-Marie O’Connor won a silver as did the mens 4×200 relay team. Muzza and Konta won, the latter has a difficult ride although Serena W lost yesterday so no Serena slam then.