The Oil Man: Oil price, Range Resources, Ophir

WTI $31.45 +1.11, Brent $31.80 +$1.30, Diff $35c -19c, NG $2.18 +2c

The oil price rise yesterday was based on industry rumour that OPEC and non-OPEC would get together and cut production; even the USA was being talked about as a cutter. In that regard, nothing could be further from the truth and I understand it would be illegal in that country.

Venezuela keep popping up, yesterday saying "stop this madness" - which is all very well, but they have no constituency. Maybe they haven't realised that the market share game is designed to take higher-cost producers off the market, of which they might be one…

The API stats come out after the market shuts and so it is no surprise that the oil price, particularly WTI, has fallen sharply this morning. A build of 11.4 million barrels, despite a small draw at Cushing, was way higher than forecasts and gasoline added 4.08 million barrels, against expectations of 1.5 million (WTI is $30.31 as I write).

Finally, the Energy Information Administration released this last night, so I will quote verbatim, for those interested in the nitty gritty:

Changing contract expiration dates will affect crude oil futures comparisons

A change to the North Sea Brent crude oil futures contract will alter the way prices for Brent futures are compared to futures prices for WTI crude oil.

Beginning 29 January, the Brent contract will expire, or rollover to the next month, approximately two to three weeks before expiration of the WTI contract for delivery in the same month. Prior to the change, the Brent contract rollover was only five to seven days ahead of the WTI rollover.

Sundry

Management changes today at Range Resources, where CEO and Trinidad country manager Yan Liu is stepping down, but remains a non-exec. The chairman is the key executive here, so this shouldn't be meaningful.

The quarterly statement, just out, is in line with recent reports. Production is down as the new rigs still don't have government approval, so my typo last time may be correct by accident!

Waterfloods will be key, with one underway, and, excluding debt repayments, cash outflow is minimal. General and administrative expense continues to fall, 34% down on the last quarter and 47% against equivalent quarter last year, and the company still has $22 million (£15 million) in cash.

Ophir have announced that their chairman, Nic Smith, is stepping down in April and, after a rigorous selection process, they have found the new boss, Bill Schrader, on their own board - how convenient…

And finally…

In Oz, the Konta and Muzza show continues and both are now through to the semi-finals.

The HubCap Stealers hung on in the Clueless Cup and eventually beat Stoke on pens; tonight will decide whether they face the Noisy Neighbours or fellow Scousers the Toffees in the final.

In Scotland, I see that Linlithgow Rose have become the first junior team to get into the last 16 of the Scottish Cup, after beating Forfar Athletic.

And the cricket was a joke, but, having won the series, how can you blame them; yesterday was described by a TMS commentator as being like the last day at school. Fair enough…

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.