WTI $47.05 -$1.12, Brent $57.08 -46c, Diff $10.03 +66c, NG $2.73 -9c
Oil price
As we come to the end of a modest down week it is certain that stock levels in the US are creating further weakness in WTI and opening up the discount to Brent to back over $10. It is not yet apparent whether the discount will widen, one one hand the contango is not now wide enough to justify storage, one the other, the imminent ending of the refinery strike should lead to a weakening of product prices and a hike in demand for WTI. Finally I expect to see some recovery in Brent as speculators cover their positions ahead of the expiry of the April contract at the weekend.
Afren - Oh what a tangled web we weave…
What a mess. Afren has announced this morning that it is in the process of a recapitalisation which will effectively wipe out almost all equity value in the company. The equity turkeys are being told by the company that they will have to vote for Christmas and leave themselves with only 11% of the fully diluted issue, failure to do so will mean that 'current shareholders would be unlikely to see any return on their current investment'. Great. The recapitalisation is nauseating to shareholders and as predicted, the bond holders have got the management in the palm of their hands, inflicting pain by the slightest of squeezes. The board will have presided over one of the biggest recent destructions of shareholder value, managed in the shortest periods of time, oh what a mess indeed.
And finally…
England look likely to end their Cricket World Cup campaign with a morale boosting win over Afghanistan before they fly home in disgrace, and to think, some people have booked flights and tickets for the final stages, big mistake….
Last night in the Boropa Cup the Toffees beat Dynamo Kiev 2-1 with a late penalty having gone one down early on.
In the Prem this weekend its all about the relegation battles as the Eagles host the Super Hoops, Leicester play the Hull City Tigers and the Maccams host the Villa. Elsewhere another North London club can takes the spoils from Old Trafford as Spurs make the journey knowing that it is no longer a fortress.
It has been a good Cheltenham and today sees the finale in the shape of the Gold Cup. Will AP win on the Lough…
