The Oil Man: Oil price, Trinity, Andes Energia
13th January 2017 11:42
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WTI $53.01 +76c, Brent $56.01 +91c, Diff -$3.00 +15c, NG $3.39 +16c
Another good day yesterday as news that the Saudis' production was falling more than expected came out. With production now below 10 million barrels per day (b/d), they are clearly making up for any quota-busters such as Iraq.
Bears of the deal will clearly take it as bad news that the Saudis have to make up for others, but that's how its going to be.
Better news came from China, where imports in December were a record 8.56 million b/d, with China National Petroleum Corporation forecasting growth of 5%-plus in 2017.
Trinity Exploration and Production
Even though I wrote about it recently and compared Bruce Dingwall to Superman or similar, I had to rub my eyes and check that it really was returning at 7p after its lengthy suspension.
As per its RNS, it really has sorted its own debt mountain and it is now hopefully manageable; it has also got enough cash to drill four wells and do some serious work on a number of existing holes in the ground.
With a target of 3/- b/d, things are definitely looking up and, with picking up too, maybe Trinidad is back on the map.
Andes Energia
Longer term readers will know that has been a favourite stock for some time, a slow burner due to Argentina's historic malaise, but one that will take full advantage of Macri's attempts to get back on a better economic footing.
Today I am seeing signs that there is a deal brokered by President Macri to enable a major ramp up of production at the Vaca Muerta by getting the Government, the oil and gas companies and the labour unions together in an agreement.
AEN may take time, but has significant value waiting to be unlocked.
And finally…
This weekend sees the rugby going back to the European Champions League Cup, with all the great fixtures that involves.
Cricket resumes again in India, with the first one-dayer starting at 0800 hours on Sunday, whilst today at a snow covered Lords, Andrew Strauss meets up with Captain Cook to try and persuade him to stay as skipper until next winter's Ashes…
A big night in the ring for James DeGale, who takes on Badou Jack tomorrow night…
And in the footy, the big game is obviously the visit of the HubCap Stealers to the Theatre of dreams.
Elsewhere, Chelski go to current Champions the Foxes (they should pick up the silverware and take it home with them) the Noisy Neighbours are at the Toffees, the Gooners go to the Swans and Spurs welcome the Baggies.
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.