The Oil Man: Oil Price, IOG, Thalassa

WTI $39.97 -$1.11, Brent $39.97 -84c, Diff $3.03 +27c, NG $2.19 +1c

So, nothing changes at OPEC, with the Gulf states maintaining their unequivocal stance that persistence with the policy will come right in the end.

If they are right, then one thing is for sure: we have a pretty dire few months ahead of us, with huge world stockpiles and full-on production from those who can, soon to be added to by those who can't, but will be able to soon.

With little sign of any demand pick-up until second-half 2016 at the earliest, the equation looks very much like lower for longer which is the current phrase of the year.

With the rig count down 7 at 737 and oil down 10 at 545, US shale is undoubtedly hunkering down - and, with US production starting to fall, there is some light at the end of the tunnel.

The only other light is a long way down the tunnel: with $300 billion (£199 billion) of capex cuts, the majors have set up a massive spike; when will it come, second-half 2016 or later…?

Sundry

Two modest bits of good news this morning, IOG has announced that it has finally got together its financing for the Skipper well and it will spud early next year. This is finally good news for the team which they deserve and, hopefully, they will emerge from their period of silence - and I will report back after that.

Thalassa is an old favourite which today announced that it has a new contract with ConocoPhilips on Ekofisk and that revenues are going to be better than had been expected; hopefully I will see the Chairman before long.

And finally…

The Premiership again provided surprises, although it says a lot that Chelski losing at home to the Cherries was not one of them…

The Noisy Neighbours lost at Stoke and the HubCap Stealers managed to lose to the Magpies - not easy when on such a winning run.

The Foxes are jubilantly at the top of the table, with the Gooners snapping at their heels, while the Hammers nearly had a historic win at the Theatre of Rather Boring Dreams…

Catch the Tingle Creek? If you did, then you may be able to tell me why a horse can barge another out of the way in mid air and keep the race?

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Malcolm is a Founding Partner of HydroCarbon Capital, which provides independent advisory services to the Oil and Gas sector. He is a Director of the Maven Income and Growth VCT 4 PLC, a venture capital trust listed on the Premium segment of the main market of the London Stock Exchange.