Oil price, Wentworth Resources – And finally…
Malcys Blog
Malcy's Blog -2 min read
09:30, 10th July 2019

WTI $57.83 +17c, Brent $64.16 +5c, Diff -$6.23 -12c, NG $2.42 +2c

Oil price

Yesterday the oil price steadied, no more, no less as international events still battled each other for supremacy. Iran is now having a go at Britain on the ship front whilst still poking the US on the Uranium front. In addition the warning of a Tropical Storm brewing in the Gulf of Mexico had operators preparing for evacuations.

The excitement was after the close as the API announced a stock draw of 8.1m barrels, way higher than the 3.1m guessed at by the teenage scribblers. If such figures are confirmed by today’s EIA numbers then those of us who have been expecting a run of inventory draws will be proved correct, in the meantime Brent is back up at $65.

Wentworth ResourcesFOLLOW

Wentworth has announced that it is to start paying a dividend which is very good news for shareholders. It plans to pay a dividend based on the company’s free cash flow generation  but ‘balancing between investment in the business and operating within existing banking facilities’.

The dividend is planned to be paid 1/3:2/3 with the first payment announced at the interims due on 3/9/19, guidance appears to indicate a yield of 5-8% which would be a significant benefit to shareholders. With regular payments from Mnazi Bay giving the company increased confidence to pay from FCF, investors can look at WRL with increased confidence. What it means for the potential acquisition(s) the market has been waiting for is a moot point but I am meeting the company next week for a long overdue catch up.

And finally…

The first CWC semi-final is still going on after rain in Manchester (No!) caused it to be carried over until today, can’t imagine that India will be shaking in their boots and will have slept well last night.

Celtic won 1-3 in Sarajevo last night so all being well the 2nd qualifying round beckons.

And whilst Konta was going out without a fight to an unseeded rival yesterday the Murena partnership flourished and will provide some fun for the adoring crowds.

Disclaimer & Declaration of Interest

The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.

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