WTI $42.62 +75c, Brent $48.81 +7c, Diff $6.19 -68c, NG $2.70
Oil price
Another short blog today as the meeting season is getting underway, next week is worse…
After further falls on Monday yesterday saw a sort of recovery on the back of better US data and the API stats showing a draw in crude stocks of 2.3m barrels. One other reason which shouldn’t go unnoticed is the fact that WTI expires tomorrow and on this morning's prices I reckon that it has lost $8.82 a barrel on the month which makes the technical side interesting. Whatever the fundamentals tell you the technicals are oversold and one would normally expect some short covering at least…
14th Onshore licencing round
Yesterday the UK Government announced the 1st tranche of the round issuing 27 onshore blocks with another 132 out for further consultation. I hope to get around speaking to the companies involved by early next week but the quoted players IGas and Egdon along with Total have a strong partnership and should be pretty pleased. I will comment further after those discussions.
Sundry
EnQuest report interims today and are showing, like others, some signs of resilience. EnQuest has achieved production of 29,665 boe/ day and retains full year guidance of 33-36/- b/d. Alma/Galia on target for first oil in ‘a few weeks’ and Kraken is on budget and ahead of schedule for first oil in 2017. Like others, costs are coming down rapidly and opex will be in the low $30’s by next year. No one is finding this easy and as it draws out financing for a number of these companies will be of significant importance…
Circle Oil report that they have had their permit on the Mahdia licence in Tunisia extended, I was due to meet Mitch recently and will update on Circle after that meeting eventually takes place…
And finally…
Last night after giving away a comedy own goal the Red Devils came back with two magnificent strikes by Memphis - there's a gag there somewhere - and a late, late Fellaini special to win the first leg 3-1.
Tonight Celtic play Malmo in their qualifying first leg.
