WTI $53.13 +51c, Brent $61.09 -5c, Diff -$7.96 -56c, NG $3.10 +12c
Oil will end the week down after mainly being hit by increasing stock levels but also international GDP worries. The EIA inventory stats showed a build of 8m barrels, way higher than forecast but the market was also concerned by a build in gasoline of another 4m b’s and not helped by refinery utilisation down by 1.7% to 92.9%. Against all odds distillates drew by 617/- b’s but the market concentrated on what looked like a fall in demand for products across the board.
Things are hotting in Venezuela where bigger and bigger crowds are taking to the streets to demonstrate against President Maduro and where the USA and a number of Latin American Governments are now openly backing opposition leader Juan Guaido. Increased sanctions on Venezuelan crude will hurt the US refiners who use their heavy crude but the pain may be worth it in the long run.
The ongoing process of trying to get planning permission for the Wressle site took another turn yesterday as an extension to the existing planning consent was approved on appeal by the Planning Inspector. This will allow the participants time to prepare the appeal against the refusal by the Council Planning Committee for the development of the Wressle oil field. Given that they plan to submit those documents ‘in the coming week’ it seems that the partners are already to go.
A lot has happened with Frontera in recent months culminating in the announcement yesterday that it is de-listing from Aim. As I understand it the company are in ‘business as usual’ stance as the operations on the ground are very much in full swing and I suspect that this is not the last we have seen of the company.
Shareholders, I am told should sit tight, there may be a consolidation of the shares but they are still very much worth holding on to as a re-listing is very much on the cards and I understand that shareholder meetings etc will carry on. The court case can be attended to and the financing put in place, on the ground they are working with potential partners of significant size in Georgia.
Desperately late for which I apologise and not in the usual format which will be resolved by next week, here is my weekly VoxMarkets Podcast, hopefully not overtaken by events.
England started badly in the first test against the West Indies but being bowled out for 77 is a disgrace whatever way you look at it. Commentators have suggested that the omission of Stewart Broad was to blame but whilst he might have made the target smaller he wouldnt have helped in the runs department. The Windies are 339 ahead with four wickets and three days in hand…
It is the 4th Round of the FA Cup this weekend and there are a few decent fixtures but in the main the draw was pretty rubbish especially not getting any minnows really good ties. Tonight it is the Gooners hosting the Red Devils which is clearly the big tie but I like Accrington Stanley (Who dey?) taking on the Rams, and Newport County at Middlesborough. The Noisy Neighbours host Burnley whilst Chelski entertain the Owls, the Hammers are at AFC Wimbledon and the Eagles may fancy their chances against Spurs.
Racing is from Cheltenham and Donny and there are some interesting prep races for would be Festival heroes.