Oil price, Jadestone, IOG And finally…
WTI $47.09 +55c, Brent $55.95 +$1.04, Diff _$8.86 +49c, NG $2.94 -1c
Oil has put in quite a shift this week and with being up a dollar already this morning looks like being a meaningful if hardly solid rally. Yesterday it did the reverse of Wednesday, it fell then rallied two bucks off the low to close strongly in a typically holiday market.
The best news for the market yesterday was that as predicted, the KSA have put the brakes on oil production big time. Reversing the decision to make crude available to all ahead of and since Iranian sanctions they have already cut back by over 400/- b/d according to Reuters. Also helping were the API stats which showed a bigger than expected draw in crude of 4.5m barrels although the products weren’t so helpful with gasoline building by 8m and distillates by 4m barrels although that is typical in holiday times.
If oil is going to rally and stay nearer, say $60 for Brent, then those who are thinking of selling out good oil companies on the cheap such as Faroe and Ophir then you really are throwing your money away.
The company announce the completion of works at the Montara field, offshore Australia, following an extensive maintenance and inspection shutdown. With the regulator inspecting now it should only be ‘within days’ when the facility is up and running again. The resultant improvement in reliability and uptime should prove what a high quality bargain this acquisition has been and it should be a matter of time only before JSE take over the operatorship. I recently met with the Jadestone management team who are mighty impressive and I am already expecting big things from them in the future, no pressure there then…
Independent Oil & Gas
The FCA are investigating London Capital and Finance but this should not affect IOG in any way. As I understand it any loans are from LOG who may borrow from LCF but that has no bearing on IOG’s situation. LOG are still good for the next tranche of the loan to IOG which is already agreed and can’t call in any existing facilities so it is business as usual.
IOG have much bigger fish to fry in the equity and debt markets as they seek to get up and running with what is an exciting series of developments in the SNS in the coming months, watch this space.
Its the big weekend of the year in footy as the big clubs join the rest in the 3rd round of the FA Cup. Always a few magic fixtures although maybe not the giant killings as in days of yore. Spurs go to Tranmere Rovers tonight and over the weekend there are a number of interesting ties. The South Coast derby pitches the Cherries against the Seagulls whilst the Hammers host Birmingham City and Reading go to the Theatre of Dreams. Accrington Stanley (who dey?) host Ipswich which won’t be easy (for Ipswich) and in the other room at Jackson Bone Andy will be watching Bristol City vs Premiership oppo in the Terriers…Chelski host Forest, the Rams might fancy the Saints while the Gooners go to Blackpool. Non-league Woking have it all to do vs Premiership Hornets and the Canaries vs Pompey should be a cracker of a game.
Last night in the ‘game of the season’ the Noisy Neighbours held on to win 2-1 against Liverpool, a couple noticed a slip back into the vernacular which I had avoided all season so far as a mark of respect.
A good round of rugby Premiership matches with Sale v Sarries tonight, a local derby tomorrow as Bristol visit the Chiefs, the Tigers v the Cherry reds and Quins travel to the Falcons.
Modest horse racing this weekend but for financiers, Jonathan Gregory’s highly fancied Grand Sancy, trained by the in-form Paul Nicholls steps up against some highly fancied runners at Sandown Park…