WTI $71.57 -71c, Brent $81.34 -53c, Diff -$9.77 +18c, NG $3.02 -6c

Oil price

The oil price fell yesterday and the blame will likely be laid at the feet of the inventory stats from the EIA. With the API having reported a build the night before the bulls wanted a draw here, 1.3m down was forecast but it turned out to be a build of 2.85m barrels. Furthermore crude built at Cushing too and with utilisation rates sharply off, the market panicked. Probably unnecessarily though as gasoline always behaves badly after the driving season, this week demand was down by 500,000 b/d and gasoline built by 1.5m b’s although tellingly at this time of the year distillates drew by 2.2m b’s.

Internationally, Iranian supply was talked about with another couple of takers withdrawing from the market but the likelihood of a release of the US SPR knocked on the head by the US Energy Secretary so the administration can’t be that worried about a high oil price can it? Oil is up about a dollar this morning.

Eco Atlantic

Eco Atlantic has announced that it has received permission to drill an exploration well on PEL 30 offshore Namibia on the Cooper Block’. This ‘highly prospective block’ has had a significant amount of work done on it by Eco, Tullow and Azinam where they are preparing to drill the ‘Osprey’ prospect which is estimated to contain as much as 882m barrels of oil equivalent on a gross prospective-best basis. This well is expected to be drilled in 3Q 2019 or 1Q 2020.

Plexus Holdings

Plexus has announced that its Russian licensee, Gusar has sold to Gazprom two sets of TRT mudline suspension systems for the construction of shallow water exploration gas wells on the Kara Sea Shelf in 2019. This is an important order in what has the potential to be a huge market ie in Russia and in gas and is without doubt a significant breakthrough in the third biggest market in the world by hydrocarbon size.

And finally…

Last night in the Haribo Cup Liverpool lost at Fortress Anfield 1-2 to Chelski which was a surprise. Elsewhere Spurs beat the Hornets on pens, the Gooners beat Brentford, Forest beat Stoke and the happy Hammers stuck 8 on Macclesfield.