WTI $46.66 -44c, Brent $49.24 -62c, Diff $2.58 -18c, NG $2.50 -4c
Oil price
A short-ish blog today as company news is a bit scarce, there is news around that affects the oil price though. Mixed thoughts from the IEA yesterday in its monthly, whilst they report the strongest demand growth in almost a decade they say that ‘markets will remain oversupplied next year as demand reduces to 1.2m b/d’. Higher Opec supply will partially offset the fall in non-Opec crude leading to a ‘marked slowdown’ in the overall supply/demand in the market.
Elsewhere Venezuela announce that 8 non-Opec countries have been invited to the ‘technical’ meeting in Vienna where policies will be addressed. Also worth a look is the situation in the debt market in the US where the twice annual negotiations are taking place. I mention this as it is a theme of mine and yesterday Emerald Oil had its credit reduced by 40% to $120m making them $20m overdrawn. Bankers, probably not for the first time are getting tough and have said with admirable frankness that they ‘want to move on from the company as a client’, more to come on this front one feels..
Tethys Petroleum
Today’s Tethys news is that Nostrum have claimed that the company is in default following the CNPC/Total action following that default in Tajikistan. Although TP are still claiming that the strategic process is ‘ongoing’ and that there are still multiple parties at the table time does seem to be running out so expect more announcements from the company.
Independent Oil & Gas
Not unsurprisingly I suppose but IOG has announced that Darwin has sold all of its subscription shares pursuant to its loan and has converted the remaining balance into equity. With no fees or change in interest rates it seems that even the debt providers are doing all they can to get the company over the line at the moment.
Sundry
Genel has announced that company President Mehmet Sepil has retired from the company ‘with immediate effect’, as founder of Genel Sepet has been instrumental in creating the present group but one assumes his role is now superfluous.
And at Primeline the trade press is carrying the news that its licence on block 33/07 in the East China Sea has been extended, there has been much news on Primeline lately and I hope to catch up with the company next time they are in town.
