WTI $51.43 +$2.22, Brent $59.19 +$2.71, Diff $7.76 +49c, NG $2.67 -5c
Oil price
Its all about the Yemen, as for the first time for a while a good old fashioned geo-political flare-up adds five bucks to the oil price. Indeed, at one stage yesterday Brent nearly negotiated $60 but came off at the end and today its $50 and $58 for the pair. This is because people have worked out that there is only the slightest risk of any supply disruption from the Middle East as a result of this jousting. By now, as they did with things like the rig count, even the most amateur of commentators (not you Marcus, you are such a pro…) know what and where the Bab el Mardeb is and how it too can de diverted around. Not that the Houthi arsenal contains anything serious enough to stop shipping at 50 miles…one hopes.
Deal or no deal?
In all this and despite much chatter about Iran it should be noted that the next deadline is only four days away, so by Tuesday there will have to be either a deal or a further pushing of the debate into the long grass, the banker offers you short shrift and no surprise, despite optimism there are still many hurdles.
In a couple of hours we will see the latest Baker Hughes rig count, unless it is a massive surprise one way or another I have a feeling that the market is becoming rather inured to the process and oil will end up, up on the week.
Egdon / Europa / Union Jack
More news today from Wressle-1, the well that keeps on giving. This time, zone 3a in the Penistone Flags has flowed 33º API crude oil at an average rate of 77 b/d perforated over a 7.5m interval. This makes the licence valuable, with the low onshore costs this will be economic at todays prices and I expect further testing and longer term production set up. Hydrocarbons from three separate reservoirs is well worth the while and with plenty of other wells to drill all the participants will be keen to get it under way.
Parkmead
I get the impression its a bit of a guilty secret liking Parkmead and its mercurial boss but I do rather like what he has set up and these figures prove that he is on the right track. Usual…
