WTI $58.94 -$1.99, Brent $65.54 -$2.23, Diff $6.60 -24c, NG $2.73 -4c
Oil price
While I have been away this week the oil price has been quite volatile partly due to the fluctuations in the dollar, its strength certainly knocked the price yesterday. The weakness followed a day when the the first stock draw for a long time gave the bulls a chance to shine but the realisation that despite this draw inventories remain at near record high levels swiftly rained on their parade. Add to that the Iranian Oil Minister's comments that his production target was as high as 5.7m b/d by 2018 and the gains were lost.
Today we have the US non-farm payroll numbers and after last month's shock the market again expects a figure of around 228,000. We also have the rig count and whilst the number has been falling fairly relentlessly there must be a chance of a rogue figure at some stage… I am away in Texas next week and hope to get a better idea of how things look on the ground.
IGas
A trading update from IGas this morning added to by the resignation of CEO Andrew Austin which came as a bit of a surprise. After ten years in the job it looks like AA feels that having completed the Ineos deal and strengthened the balance sheet this is a good time to move on leaving the company in a 'good place'. Stephen Bowler takes over in the CEO role and his experience at the company as CFO will serve him well as the next phase of the company's growth pans out. This includes a carried work programme of $285m, $30m in cash from the Ineos deal and further asset sales and cost savings from the Dart acquisition. More on IGas after I get to chat with Stephen Bowler…
Sound Oil
I have spent three days this week in Italy visiting the Sound Oil facilities and spending time with senior management from the UK and over there. Given the amount of news around from the company recently there is little to add but I was extremely impressed by the operation at Nervesa which is drilling at the moment and the site is as efficient as I have seen. If Nervesa delivers the goods then anticipated cash flows, allied with the recent raise will, along with promised acquisitions leave Sound Oil in a very strong…
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