WTI $49.61 -$1.15, Brent $59.73 -75c, Diff $10.12 +40c, NG $2.84 n/c
Oil price
The Non-farm payroll number came in at 295/- way ahead of the consensus of 240/- and the unemployment number came down as well making a June rate rise more likely than September now, markets came off as a result and the greenback strength doesn't help the oil price.
Of course being a Friday it meant that it was rig count day and after last week's modest number it came in at minus 75 to 1,192 overall, in oil it was -64 at 922 with Texas and the Permian taking the biggest hit. Having come down sharply after the nfp, the crude price recovered somewhat although Brent was down almost 5% on the week. News from China that February oil imports were higher than expected due to further inventory build has steadied the market somewhat and maybe also given a reason for that strong performance last month.
BP
As a result of the LetterOne RWE deal, BP faces an old adversity in the guise of a certain Mikhail Fridman who becomes their partner in the West Nile Delta project, they say you should keep your friends close and your enemies closer, quite where you put him is anyone's guess…The deal also reunites BP with Lord Browne who's record at the company speaks for itself. They also announce a gas discovery in the Eastern Nile into the bargain. BP has also conceded defeat and ended its bid to oust the administrator for the Macondo payout fund, Patrick Juneau remains overseeing payments to businesses and individuals which lawyers have unsurprisingly now asked to be speeded up.
Falkland Island drilling campaign-Premier/Rockhopper/FOGL
With the drilling campaign in the Falklands getting under way on Friday all the UK companies involved had investor/analyst meetings in the last few days. Premier covered the process in their results meeting where exploration chiefs were excited and optimistic and why not, this might be the biggest chance of success with the drill-bit this year.
Rockhopper and FOGL had a Capital Markets Day where they presented their thoughts, RKH had the opportunity to give a bit more information about the Sea Lion development, which is going ahead regardless of success in this campaign whereas FOGL purported to be the 'leading Falklands explorer' without any sign of tongue in cheek…
The programme has started with a well on Zebedee where…
