WTI $53.78 +49c, Brent $59.31 +19c, Diff -$5.53 -30c, NG $1.92 -4c
Until this morning it looked like oil might have another up week and approach recent highs, however the technical gains made due to the inventory figures and Opec+ agreements are being overshadowed by Covid-19 resurgence.
With the virus deaths spreading to Japan and now South Korea it looks like China are making more economically bearish noises. Only yesterday people thought that things were getting better especially as scientists thought they had traced the way the virus is spread but there is clearly much more to be done yet.
Hunting has announced the completion of the acquisition of Enpro Subsea for $33m plus a maximum earn-out of $3m. The deal is being done on a cash-free-debt-free basis and the cash consideration will be paid from existing resources and the vendor is the management along with the P/E firm Energy Ventures.
With the ability to use the acquisitions’ currently outsourced manufacturing the deal looks excellent for Hunting indeed CEO Jim Johnson commented as follows.
“The acquisition of Enpro further strengthens Hunting’s subsea offering and adds a high technology product group to our portfolio. The offshore market continues to strengthen and we look forward to providing a wider technology offering to our customers who continue to seek lower cost, enhanced production and more efficient solutions to the production of oil and gas.”
This looks like another bread and butter acquisition from Hunting at a time when their strength enables them to take advantage of current market conditions.
Victoria Oil & Gas
Hot on the heels of the previous announcement in which VOG hadnt revealed the extent of the dispute with ENEO they now reveal a complicated arbitration dispute with previous tormentors RSM. After having thought they might have won it now looks as if RSM has filed a separate arbitration under UNICITRAL regulations and where previous disputes may return.
Without any contact from management yet it’s hard to glean too much positive news but as soon as I hear from the CEO I will be right back.
It just might be one of those exceptional weekends of sport as boxing rugby and football all have bouts at the highest level.
In Las Vegas Deontay Wilder and Tyson Fury continue their battle after the draw 15 months ago. Wilder, with his title is a marginal favourite especially as it can sometimes, not always, be true that a fighter from the UK has to knock out his opponent to win on points, know what i mean Harry?
Next up is the rugby 6 Nations Championship with Italy taking on Scotland tomorrow before Wales v France which will show what France are really like this year. Finally on Sunday at Headquarters, England take on Ireland with another team of players playing out of position.
The big game in the Prem this weekend is the London Derby of Chelski v Spurs whilst the Noisy Neighbours are at the Foxes, the Hornets visit Old Trafford and the Toffees go to the Gooners. Liverpool host the Happy Hammers on Monday night.