WTI $46.26 +72c, Brent $49.25 +$1.12, Diff $2.99 +40c, NG $2.45 n/c
Oil price
A good day for the oil price as news from Russia and China helped crude continue to consolidate at these levels. The Russian move was on two fronts, firstly as it agreed to meet other major producers ‘if asked’ and also as it has a scheduled meeting with the Saudis later this month. Having said that, positions taken during the latest Russian bombing of Syria makes me wonder quite how the Russo/Saudi axis is going to function at the moment.
The news from China appeared to help the oil market as well, demand appeared to be boosted by Government statements and also news from the Baltic Exchange gave a glimmer of hope as well. They said that supertanker rates were continuing to rise, yesterday achieving $104,256 p/d from Saudi to Japan which was last seen in July 2008 and independent commentators said that the Chinese had also been buying spot cargoes. Now ship-brokers are a funny breed but it wouldn't be the biggest surprise if there was some buying going on at these levels especially if the Chinese think that the world is too bearish about their economy…Finally the holding of Brent over $49 is keeping the technical boys very happy…and WTI chart here also worth a sneaky perusal…
BP
The FT reports today that the company will pay $20.8bn to US federal and state authorities to settle civil claims over the 2010 Deepwater Horizon disaster. The settlement is higher than the $18.7bn announced in July and takes the total bill to over $55bn to date and it’s not finished yet. My early estimate of $60bn may yet prove to be not as outrageous as it seemed at the time…
Wood Group
Wood Group has announced that Bob Keiller is to ‘retire’ in December as CEO of the group, as Bob is only 51 I hear and has only been in the job for less than three years it seems rather premature, rather like his predecessor. The company has announced that Robin Watson is to succeed him next January as part of the company’s ongoing succession plan. Now Robin is a first rate COO and I’m sure that he will make a fine CEO but something doesn't smell quite right, this seems to be a case of a CEO leaving half way…
