WTI $45.54 +80c, Brent $48.13 +44c, Diff $2.59 -36c, NG $2.45 +2c
Oil price
Both WTI and Brent fell marginally on the week, on the month they were both off about a dollar but on the quarter it was much worse, coming in at around $15 below the end June prices. The news from the US on Friday was mixed as far as the oil price is concerned, the NFP numbers were well below expectations and the August number was also revised down genuinely surprising the market. One has to wonder how the cumulative brains trust at the Fed had managed to spoof the markets into thinking that the economy was capable of a rate rise, although according to guru Marcus Ashworth this morning some are still saying that it may still happen in December. The oil price likes a weaker greenback but is less happy that it is weak due to economic malaise particularly if the US economy is faltering and the employment, wage info and factory orders have all been disappointing.
The Baker Hughes rig count also helped the market, overall the number was down 29 units to 809 with oil rigs down 26 to 614 being the bulk of it with all major shale basins seeing reductions. News over the weekend is that Saudi Aramco has cut crude oil prices to its Asian clients by $1.70 p/b which takes it to a discount to the Dubai benchmark, it has also cut heavy oil prices by $2 a barrel.
Ithaca Energy
An operational update from Ithaca this morning for the 3rd quarter although most of the pertinent information came out with last week’s FPF-1 and the ‘incentivisation’ of Petrofac. Production in the year-to-date is 12,300 boe/d and guidance of 12/- b/d is maintained. Full year capex guidance is down by $30m and end 2015 net debt will be approximately $750m against previous expectations of $800m reflecting cost savings across the board. With the extent of the hedging programme being significantly beneficial, Ithaca deserves to be right up there as one of the best companies in the sector, assuming Greater Stella goes ahead as planned next summer it will have production growth to go alongside lower costs and stable finances. I am seeing the company this week for an update which I hope will confirm this.
Aminex
Aminex has announced that the Tanzania Petroleum Development Corporation is to acquire a 5% stake…
