WTI $68.08 -50c, Brent $74.73 -82c, Diff -$6.65 -32c, NG $2.92 -2c
A slight drift yesterday as the market considered the opec and Non-Opec meetings and fretted about a potential 1m b/d of extra oil. Now let’s be sure about this, any weakness in the oil price in the second half will likely come from a weakness in demand as no way can Opec add a million b/d just like that. The differential narrowed as expected after I mentioned yesterday about the Syncrude facility and Platts again talking about a shortage of WTI in Midland and beyond.
PFC have their summer trading update today and there is very little to add to existing knowledge with trading in line with expectations. New orders of $1.8bn have added to the order book and there are around $20bn worth of bid opportunities due in 2H of this year. Debt is in line at $0.9bn and the company say there is ‘good revenue visibility’. The conference call was a quiet affair and following the extensive visit to the Middle East earlier in the year analysts seem to be happy with progress at PFC. The company is clearly delivering on what is still a new strategy but the customers just keep on coming.
Victoria Oil & Gas
A most interesting move by VOG this morning as they announce an Exclusive Compressed Natural Gas (CNG) partnership with Naturelgaz to design, build and operate CNG infrastructure solutions for mobile customers. Initially in Cameroon but with plans to roll-out the concept into other African countries.
The partnership will market a variety of CNG products from bulk CNG and GTP to utility and business customers for off the grid and off pipeline solutions. There will also be a planned Auto CNG part of the business as Naturelgaz has a cooperation agreement with CNG vehicle producers. These plans should be an important part of VOG’s broadening of customer and product interface and should enable the company to monetise its substantial and dominant position in natural gas in Cameroon and eventually beyond.
Yesterday provided little in the way of surprises in the World Cup but you could hear the world waiting for the ref to bring out the red card for Ronaldo and a huge disappointment when it was only a yellow. Spain and Portugal and Russia and Uruguay all proceeded through to the last 16.
Today we have Australia v Peru, Denmark v France, Iceland v Croatia and Nigeria v Argentina who surprisingly need to get a result to qualify….