WTI $46.24 -$3.64, Brent $56.26 -$3.35, Diff -$10.02 +29c, NG $3.84
Another very bad day for oil yesterday and whilst news is still not good it is certainly not as bad as this price suggests. Today is Fed decision day and we are led to believe that another rise is on the cards but from what I can see there are unlikely to be many, if any more rises in the foreseeable future. The inventory stats have been poor, Genscape was bad, the API last night had a build of 3.5m in crude and almost as bad in gasoline, tonight’s EIA numbers should confirm these. Finally traders worry that Russia is still producing around 11.42m b/d and has shown no sign of cutting back, I suspect that will happen soon. For me this most recent price fall has been overdone and a rally should be on the cards, famous last words…
Reabold has announced that drilling operations have commenced at the VG-4 well in the West Brentwood licence onshore California. Following the success of the VG-3 well the RBD team are confident of success here. As we head into 2019 the company has a long list of exciting, potentially game-changing wells to drill, 2019 will be an exciting year for the team.
Angus has announced that it has started a commercial flow test programme at the Brockham conventional oil field targeting the pay zone in the Kimmeridge layers of the BR-X4Z well. Angus is the only UK company with a production licence in the Weald Basin and follows the successful test of the Balcombe discovery which itself exceeded expectations. A good flow rate here would be a significant boost for ANGS and prove that it has been a good year for the company.
Independent Oil & Gas
Writing the blog on the Ipad whilst on another crowded train yesterday there was always a chance of over promising and under delivering, the piece on IOG was in the top bar but not in the text, apologies and well spotted those who dropped me a line!
IOG has announced that Mark Routh will be stepping down from the Board and will be replaced as Chairman by Fiona MacAulay as Independent Non-Executive Chair. IOG go into 2019 with an exciting gas project which has a formidable financing requirement and also the exciting Harvey appraisal well expected in 1Q next year. Shareholders will be looking forward to monetisation of this potentially transformational project which, given current and expected gas demand and realistic pricing should reap significant rewards.
When is news not news? When the Special One becomes the Sacked One, the only sad people in Manchester will be at the Lowry Hotel where he has been staying for nearly three years…The baby faced assassin is taking over for the rest of the season and the only decent bet left is what price is Eddie Howe to take over at Spurs in the summer?
Haribo Cup, Noisy Neighbours beat the Foxes on pens and Boro lose at home to Burton. Tonight the Gooners have Spurs and the Cherries are at Stamford Bridge.