The Oil Man: Oil price, BP, Cape, Falcon
5th October 2016 10:13
WTI $48.69 -12c, Brent $50.87 -2c, Diff -$2.18 +10c, NG $2.96 +4c
It was a quiet old day yesterday in crude markets, with the feeling that if Brent in particular could hold above 50 bucks then we might indeed remain steady for a while, despite headwinds from fundamentals.
However, it is never wise to expect the status quo and, after the close, the American Petroleum Institute (API) inventory stats came out, showing a draw of 7.6 million barrels against expectations of a build. The oil price is about 50 cents above last night's close and, at the moment, holding those levels.
Only tonight's Energy Information Administration stats will tell who is right: those glory boys from Wall Street, who have a whisper of a 2.6 million barrel build, or the API, being more accurate for once.
Interesting to note that private company Caelus appears to have found 2.4 million barrels of recoverable oil in the Smith Bay area of Alaska.
BP
The Clair Field remains shut-in as the company repairs a leak; in a week when a certain movie is released, one suspects that the words "belt" and "braces" are being used a fair bit.
Also has apparently signed up for a 20-year off-take deal with for their Mozambique gas in Area Four, this should encourage the final investment decision and the long-awaited farm-in by .
Cape
has announced that it has extended and expanded its Perenco contract in the UK. The contract, with no time-frame or value, is for industrial and support services over Perenco assets in the Southern North Sea.
I remain very happy with Cape which, despite being in a difficult place, has amongst the best management in the sector and an attractive rating into the bargain.
Sundry
has announced that Anne Flynn replaces Michael Gallagher as CFO, the former leaving yesterday…
And finally…
A touch quiet on the sporting front, as we are in another of those dire international weeks.
With a thriller against Malta at Wembley at the weekend, we try to dampen things down by sacking league managers; yesterday Cardiff joined Swansea in releasing the boss and are apparently about to name Neil Warnock as the new chief...
And it's that time of year when all baseball fans get excited as we head towards the World Series of the best North American teams; will try and keep y'all updated…
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.
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