WTI $47.33 +$1.45, Brent $50.22 +$1.49, Diff -$2.89 +4c, NG $3.29 +7c

Oil price

All of a sudden the oil market is hotting up as a combination of Opec Ministers chatter, Aramco cut backs and inventory draws make the bears head for some serious short covering. At the meeting between the Iraqi and Algerian Oil Ministers yesterday the former said that ‘Iraq is on board with extending the deal at the next Opec meeting to help stabilise oil prices and balance the market’ with which the Algerian Minister,  ‘concurred’.

Also yesterday Aramco announced that it was cutting supplies to its Asian clients by 7m in June which is important as up until now those clients had received all of their quotas. Finally the EIA inventory numbers were better than expected, crude drew 5.3m barrels, way more than the expectation of just under 2m and there were draws in gasoline, 150/- b’s and distillates, 1.6m b’s as well. The crude number was better as imports fell by 800/- b/d in the period but even though that number can be variable the fact that total stocks fell was good news.

Links

It’s a very quiet couple of days on the company news front so yesterday I headed into the TipTV studio to chat to Zak Mir about the oil price and a quick look at the charts on some stocks I have been talking about lately. The link is below and here are the stocks with the times they come up so that you can go straight to them if you need to save time.

Amerisur 4m 40s, Hurricane 7m 21s, SDX Energy 9m 20s, and Trinity 11m 50s.
TipTV interview: Oil sell-off – perception overpowers reality

 

Solo/LGO

I notice that Neil Ritson has increased his commitment to Solo by moving from Non-Exec to Executive Chairman which is no surprise as there are now a number of projects of increasing importance for him to work on. It also suits that he has ‘stepped down’ from the Chairman/CEO position at LGO to make up the time. Whilst on the subject of LGO I detect a considerable changing of the guard, indeed one could almost say that it was a clean sweep as Leo Koot, formerly of TAQA joins as Executive Chairman amongst other exec and non-exec changes. The company is even changing its name to Columbus Energy Resources, I suppose to try and exorcise the demons that the letters LGO mean to many. It will be interesting to watch this process, for the time being from a distance and I will be meeting the new management soon.

And finally…

For Gooners fans the top 4 is now a realistic possibility after last night’s victory over the Saints, indeed it must firm up the contract that Arsene has had in his desk for weeks now, for better or worse.

In the Champions League the final in Cardiff will be between Real Madrid and Juve after last night’s second legs. In the Boropa Cup Celta Vigo travel to the Theatre of Dreams for what will be the most important match of the season….so far.