Slap bang in the middle of the current range, oil is limited to a large extent by the vaccine roll-out and also Opec+ production policy. DGOC's bankers have reaffirmed the existing terms of their credit facilities, here's hoping they use it. And after Hurricane's RNS yesterday I didn't see much that the market wasn't already aware of.
Another huge week as WTI rose $4.59 and Brent $3.23 on Opec+ supply constraints and Virus concerns abating. DGOC have had yet more good results, Genel announce 10/- b/d from Sarta a creditable achievement with more to come. Sound has sold acreage in Italy and UOG spudded in Egypt.
Oil is moving about depending on new moves from the White House, from Iran who are increasing production in the hope that Biden won't keep sanctions on and IMF GDP forecasts. Despite positive API stats oil has backed off a bit right now. A positive statement by DGO ahead of their figures shows the model working well and Angus has slipped in with a modest raise.
The 2021 Bucket List.
WTI $42.42 +52c, Brent $44.96 +76c, Diff -$2.54 +8c, NG $2.65 +6c Oil price Another good week making one believe that there are indeed better opportunities should the current good ...
Oil fell sharply, mainly on COVID which is fast closing economies, particularly in Europe. The EIA stats were a mixed bag, crude stocks built by some 4.3m barrels whilst gasoline drew, but distillates fell 4.5m b's. In the meantime overall consumption in the US grew again, by 1.5m b/d to 19.6m b/d, huge. Genel has announced good production figures from Tawke and payments from the KRG. DGO have again showed how good the model is and have increased the dividend by 7%. Finally, Sound Energy have proposed a debt restructuring as operationally they continue to do well.
Oil is drifting and was around even on the week. Zephyr Energy has announced a raise of £2.25m which is more than enough to cover their costs of the dual use well in the Paradox Basin. I link to a Podcast with Total Market Solutions as part 1 of 2.
In a packed programme tonight...the oil price which ended last week on a downer is up nearly $2.50 as I write. DGO has signed up with Oaktree Capital Management in an interesting co-funding deal. IOG has walked away from a potential bid for Deltic, not the first to do so recently and Chariot seem to have found a top quality country manager for Morocco. Union Jack and Reabold have spudded at West Newton and Predator has updated on operations and added detail on Trinidad. Finally what might be the deal of the year, Zephyr has announced good news from the Paradox in Utah.
Oil continues to drift but news is mixed, the virus vaccine is back into trials and economic data from China is better. Tropical Storm Sally is headed towards shore and the GoM is shutting in but this one may hit refineries more with flooding. DGO has confirmed its super dividend for UK shareholders and President report more operational success in Argentina. Rockhopper remains an interesting geared option on Sea Lion and its arbitration case. Finally, Genel has announced publication of its first comprehensive sustainable report and looks to be well placed and very investible.
After topsy turvey inventory stats, always to be expected, oil fell and with US markets in retreat is down another dollar today. DGO is rewarded by its success by being allocated a space in both the FTSE 250 and FTSE All Share Index effective 21st September. Wentworth announce solid figures and announce a 20% increase in the dividend giving the shares an 8% yield. President have kicked off the drilling campaign with an successful workover well 'materially ahead of expectations and GKP have hunkered down but in a strong position to eventually recover. Finally Zephyr yesterday announced news from the Paradox Basin in Utah, this one is well worth watching...