The Oil Man: Oil price, Providence, Shell
29th January 2016 12:13
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WTI $33.22 +92c, Brent $33.89 +79c, Diff -67c +13c, NG $2.18 +2c
Talk around the marketplace is all about the potential for talks between OPEC and Russia - or, more accurately, between the Saudis and Russia. Whether or not you believe the likelihood of this actually happening probably defines your position in the market; at present the bulls have it by a whisker, but only just.
Russian energy Minister Alexander Novak uses his words wisely, suggesting, as is always the case, that a meeting to discuss production cuts is always possible - "possible" being the key word. The other key word is Iran; doing any sort of deal without them cutting is pretty much off the table. Your call…
With oil prices already 25% off the bottom, the risks appear to be very much in the price and, with a new Brent contract upcoming, temptation to take short term profits will be strong. As mentioned earlier in the week, Brent contracts, as from now, expire two weeks earlier; March goes off the board tonight.
Providence Resources
A technical update from this morning as the assessment from the seismic data on the Porcupine Basin is released.
The company has confirmed that the new prospect "Ruadhan" (previously identified by 2D) is now clearer, through the use of more detailed imaging. Providence also says that, while it is not in their gift, the Spanish Point well will be drilled next year.
Finally, there is still no news on Barryroe; the market lost its patience on this one a long time ago and, whilst it is deemed to be of significant value, the words "I will believe it when I see it" come to mind.
The share price shows just the faintest glimmer of hope for holders and, whilst trust is a rare commodity in this one, it may just be worth keeping on the radar…
Sundry
The results season started early this year, as and had to report before this week's votes, but watch out for later today, and next Tuesday and on Thursday.
It is worth taking a look at an interesting article on Exxon in today's Wall Street Journal; it points out that $1,000 invested in the company in 1970 would now be worth $33,000 - four times what the money would have earned in the S&P index.
Another longer term point is that Exxon buy-backs are substantial; since 2000 the company could have bought BP, Chevron and and still have $30 billion (£21 billion) in change…
On the subject of BG, the vote duly beat the 75% target and got through with 99.5% of the votes, full steam ahead now for a 15 February completion.
And finally…
Even LvG would probably admit that losing at Derby tonight in the FA Cup would mean P45 time; live on prime time terrestrial TV, it could get ugly, even by recent standards.
Elsewhere in the cup, The Gooners host Burnley, the Eagles face the tricky visit of Stoke, The Happy Hammers go to Anfield and Watford have a tricky visit to Forest, just to name a few hard-fought ties.
Easier matches include Spurs going to Colchester, the MK Dons hosting Chelski and the Riviera derby sees Pompey entertaining Bournemouth.
Some cracking fixtures in the rugby Premiership, but the pick are probably the Saints v. Wasps and Sarries v. Bath.
Over to Melbourne, where Muzza is having a hard time in his semi-final against Raonic; as I write he is 2-1 down in sets…
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.