The Oil Man: Solo Oil, LGO Energy

WTI $47.33 +$1.45, Brent $50.22 +$1.49, Diff -$2.89 +4c, NG $3.29 +7c

All of a sudden the oil market is hotting up as a combination of OPEC ministers chatter, Aramco cut backs and inventory draws make the bears head for some serious short covering.

At the meeting between the Iraqi and Algerian Oil ministers yesterday the former said that "Iraq is on board with extending the deal at the next Opec meeting to help stabilise oil prices and balance the market" with which the Algerian Minister," concurred".

Also yesterday Aramco announced that it was cutting supplies to its Asian clients by 7 million in June which is important as up until now those clients had received all of their quotas.

Finally, the EIA inventory numbers were better than expected, crude drew 5.3 million barrels, way more than the expectation of just under 2 million and there were draws in gasoline, 150,000 barrels and distillates, 1.6 million barrelss as well. The crude number was better as imports fell by 800,000 barrels per day in the period but even though that number can be variable the fact that total stocks fell was good news.

Solo/LGO

I notice that Neil Ritson has increased his commitment to Solo by moving from Non-Exec to Executive Chairman which is no surprise as there are now a number of projects of increasing importance for him to work on. It also suits that he has 'stepped down' from the Chairman/CEO position at LGO Energy to make up the time.

Whilst on the subject of LGO I detect a considerable changing of the guard, indeed one could almost say that it was a clean sweep as Leo Koot, formerly of TAQA joins as Executive Chairman amongst other exec and non-exec changes. The company is even changing its name to Columbus Energy Resources, I suppose to try and exorcise the demons that the letters LGO mean to many.

It will be interesting to watch this process, for the time being from a distance and I will be meeting the new management soon.

And finally…

For Gooners fans the top 4 is now a realistic possibility after last night's victory over the Saints, indeed it must firm up the contract that Arsene has had in his desk for weeks now, for better or worse.

In the Champions League the final in Cardiff will be between Real Madrid and Juve after last night's second legs. In the Boropa Cup Celta Vigo travel to the Theatre of Dreams for what will be the most important match of the season….so far.

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.