WTI $70.97 -$2.20, Brent $80.26 -$2.83, Diff -$9.29 -63c, NG $3.22 -6c
As expected oil came back to earth with a bit of a bump this week and if it hadn’t been for a bit of a rally this morning may have been 5 bucks down on the week. Put into context though and things aren’t that bad, give an oil executive WTI above $70 and Brent over $80 a while ago and they would have had your arm off, even the STEO isn’t as bad as it might have been. And when you look at the gas price you can be even more comforted, at $3.28 yesterday it is positively basking.
This week’s worries have been based around global growth forecasts which have been trimmed, no more and they knocked on to the Opec growth estimates for next year, also slightly trimmed. Next year they expect growth of 1.36m b/d with the usual concerns about emerging markets, Fed policy and rising Non-Opec supply. Having said all that the Chinese crude import figure showed a rise to 9.05m b/d, hardly sloppy under the circs. Finally the inventory stats have been poor for three weeks now, again a seasonal factor that won’t change until it gets cold. With utilisation rates back to 88.8% and another 6m b’s adding to stocks the numbers are climbing back to the five year average, yet again nothing to panic about.
Someone has forced FRR into announcing things it has announced before as the share price has been very volatile. Last week’s presentation was, I understand very well received and the shares rose after it but they had been subject to some technical pressure I am told. So today we get confirmation, if any was needed, that the company is still in discussions with two major oil companies with a view to operational collaboration, nuff said.
Catch up, links etc
This week has been mad, many interviews, hopefully linked below and mainly flash blogs of limited success, apologies. A couple of news items slipped though the net so here goes.
RockRose has been a very strong performer recently and yesterday announced that the Arran deal had completed. Another excellent deal that will give RRE 30.43% and in due course 6/- + b/d net to them. Shell operates and one can only assume that Mr Austin has more deals up his sleeve.
Q3 production at Touchstone was 1,758 b/d and the company beat its target of 2/- b/d during October. It has drilled 8 of the planned 14 wells already and another 4 are in pre-drill mode. It appears that there has been only one duster at the Coora 2 Block so they will move from the Upper Cruse to the Forest formation next instead.
Firstly Monday’s VoxMarkets Podcast
Secondly I was lucky enough to interview Ed Story CEO of Soco International on Tuesday, a fascinating chat.
And on Wednesday I caught up with Andrew Hockey, CEO of Independent Oil & Gas for a chat about his gas hub strategy.
With yet another dire international break there is little to offer up, England play in Croatia but even their fans won’t see it as the match is being played behind closed doors after the infamous swastika incident. Northern Ireland are in Austria and we wont mention Scotland and Wales this time.
But, the Rugby European Champions League is back with some tasty fixtures all over the weekend.
It’s the Cesarewitch at Newmarket as we come towards the end of the season with Champions Day next Saturday.
In the baseball, the Dodgers take on the Milwaukee Brewers in game 1 of the NLCS tonight and then the Red Sox face the Astros at Fenway Park tomorrow. We could still see a repeat of last years World Series although both Houston and LA will have to win away if they want to progress.
Five financial stories, trending today in a 70 second podcast, including: MPs have voted to take control of Commons business for a day, in an unprecedented move to try to find a majority for any Brexit option. It means MPs will get a series of votes tomorrow to find out what kind of Brexit they will support, even though Theresa May has said there is no guarantee, she will abide by their decision.
On today's podcast: Live Company Group discuss progress including their new BRICKLIVE Show in Geneva. Bigblu Broadband cover the highlights from their final results released today. Rockfire Resources talks about the high grade copper from their Copper Dome Project in Central Queensland. Botswana Diamonds discuss their interim highlights.
Louis Coetzee, Chief Executive Officer of Kibo Energy (KIBO), addressed shareholders in a letter detailing progress the AIM listed energy company has been making in Sub-Saharan Africa and the UK. “Africa represents a rapidly growing market economy with an acute power deficit”
SP Angel daily look at commodities and miners, featuring: Bushveld Minerals (BMN LN) – Drill results at Brits vanadium project Chaarat Gold* (CGH LN) – Kapan site visit notes: focus on productivity to deliver sustainable cash generation MOD Resources (MOD LN) - Infill drilling at T3 project delivers increased reserves
Oil and gas investment company, Reabold Resources (RBD) shared with investors today that Rathlin Energy, operator of the PEDL 183 license onshore UK, has signed a rig contract for the drilling of the West Newton appraisal well. The well is expected to spud in April 2019.
Five financial stories, trending today in a 70 second podcast, including: Optimism about the business outlook, among Britain’s financial services firms, has fallen at its fastest rate since the 2008 financial crisis, amid concerns about Britain’s exit from the European Union.