The Oil Man: Oil Price, Hunting, Aminex/Solo

WTI $44.83 +39c, Brent $47.26 -37c, Diff -$2.43 -14c, NG $2.72 -8c

The agreement at the G20 meeting between Russia and Saudi Arabia was worth the paper it wasn't written on, and those who believe any lasting agreement can be achieved in Algiers later this month should apply for a reality check.

Interestingly, after the Russians had said they would welcome an OPEC production freeze (they would, wouldn't they), the Saudis countered by saying it was not the only option.

Like they know how they can increase the oil price without taking 2 million barrels a day off their spigots.

Aminex/Solo

It is difficult to conclude from the statement quite who got the better end of the deal, by which Solo doesn't exercise its option to buy another 1.25% WI in Kiliwani North from Aminex, which remains with 54.575% of the asset.

Let's just say it benefits both companies, although, having raised money recently, I suspect Aminex might have got the better of it. I like both these companies which, apart from sharing this asset, have interesting other fishes to fry.

Notably for Jay and team at Aminex, they can now concentrate on appraisal and development of a fully funded drilling programme in the Ruvuma Basin.

Hunting

Catching up with the Hunting results from Monday and a glance at the share price chart would make you wonder whether the figures you were seeing and the picture you were looking at were the same company.

Deep into service company recession, with halved revenues and operational losses, passed dividends and tricky conversations with bankers - and the shares have nearly doubled from the January low and just passed the June high for the year.

It's the mirage effect of seeing the pick-up just on the horizon and yet still not meeting it. Brokers with 'sell' notes need not apply here; the market can see the future, while a hugely reduced cost base and, ironically, a strong balance sheet give optimal hope.

The figures were awful, a bigger-than-expected loss - understandably margins crashed and, with revenues halved, earnings per share losses were substantial.

However…CFO Peter Rose has been very busy and the financials and debt position are in surprisingly good nick; inventory has been attacked with a vengeance, capital spend has withered, costs are down across the board, leading to a reduction in working capital (and cash is king).

Even the banking terms are relatively unscathed: the revolver is down to $200 million (£150 million) and, with other facilities, should mean that Hunting gets by. I even heard that, should all go well, they can drop back to previous covenants…

The presentation was downbeat but pragmatic by Hunting standards; apart from the financials Dennis only spoke to one slide and took questions. The underlying industry statistics still show that, by 2020, at current rates of depletion and a modest increase in demand, the oil boot returns to the other foot; survivors when the market turns should be in the box seats.

That "when" is still a tentative statement; assuming it does, and pricing is at all realistic, then the survivors will do well - that is, assuming that you have some stock left on the shelves to sell and the banks have not grown any more teeth.

The share price says that it will; my confidence in Hunting has remained intact but not without the odd faint moment. That recovery had better come soon….

And finally...

Muzza plays Nishikori in the quarter finals of the US Open this evening, Djoko has made his semi final against Monfils after Tsonga retired, making three matches which either haven't started or finished for him in the tournament.

The final game of the Pakistan tour is tonight as the T20 game concludes the process. At the moment, players are trying to decide whether or not they should tour Bangladesh this autumn; England reckon it's safe enough, but not pressing players if they don't want to go.

Last night Marcus Rashford scored a hat-trick on his debut for England under 21s, which I suppose justifies playing that game and not the grown-ups; its the Manchester derby on Saturday….

The long-awaited rematch between Fury and Klitschko has been announced for 29 October, who will blink first this time, I wonder?

And the Paralympics start tonight in Rio; in London I was lucky enough to be at one of the big athletic nights, which was truly memorable.

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.