WTI $58.61 +35c, Brent $67.23 -32c, Diff -$8.62 -67c, NG $2.86 +4c
Oil will finish the week up after the stock draws and Opec production cuts which today show that February Opec production was only 30.5m b/d. The Opec report out today also has the global GDP outlook as indifferent at best but against that has the call on Opec crude to rise in the 2nd and 3rd quarter before looking soggy in Q4.
As inevitable as death and taxes is BPC’s need for moolah at this time of year, last year the friendly major brought in some but right now the company needs more for ‘ongoing funding’ and has thus announced a raise of $2.54m at 1.6p, a deep discount to last nights close of 2.55p.
The company is still seeking a farm-in partner to finance the exploration well but remain ‘confident’ now that the licence has been extended until 31/12/20 with ‘discussions ongoing’ with a number of potential partners. I would normally say that the process has now gone on for so long, and with the exception of last year’s fish that got off the hook, it is unlikely that a partner can be found.
There is one line of thought that I wrote about last time which just might give shareholders a faint chance for optimism, at least a straw to hang on to. If, say, last years fish had walked away from discussions because they thought that the licence might expire giving them an opportunity to negotiate with the Bahamas Government, that disappeared with the renewal. The data room clearly has serious potential partners in it, who is to say that last year’s candidate has not returned, but the only downside is that any prospective farminee will drive a hard bargain, 20/80 or maybe even 10/90…..
Monday’s Voxmarkets podcast escaped from the blog earlier in the week, if you havent heard it on social media here is the link.
What a massive sporting weekend it is with excitement over many sports and across continents. The F1 Grand Prix season starts on Sunday in Melbourne with new teams, cars and sponsors. Ferrari seem to be the favourites but surely Mercedes won’t make it easy for them? Verstappen will fly as before and with Raikkonen and Ricciardo in an Alfa and a Renault what more could you ask for?
The Champions League draw for the Quarter Finals has been made, with the Red Devils drawing Barca and Spurs drawing the Noisy Neighbours Liverpool must have sighed with relief getting Porto…
This weekend’s footy is split, in the FA Cup the Hornets host the Eagles, the Swans entertain the Noisy Neighbours, the Red Devils visit Wolves and Milwall host the Seagulls.
In the Prem, Liverpool are at The Cottage and Chelsea are at the Toffees. Finally on footy I noticed that Paul Scholes resigned as manager of Oldham after just 31 days, just finding it easier to criticise than to actually do the job…..
Of course it is the last day of what has been a magnificent Cheltenham, wish I had been there but the question today is, will Presenting Percy win the Gold Cup having not had a run all season?
And also the last day of the Six Nations rugby where Wales are in control, beat Ireland at the Principality Stadium and the England v Scotland match immediately afterwards will be meaningless. I shall be there though whatever the possible outcome.