Malcy's Oil Report - SLE, GKP, WRL, TPL, AEX, TRIN

Monday, Aug 24 2015 by
2
Malcys Oil Report  SLE GKP WRL TPL AEX TRIN

WTI $40.45 -87c, Brent $45.46 -$1.16, Diff $5.01 -47c, NG $2.68 -8c

Oil price

Oil closed sharply down again on Friday, the prices above showed a drop of $2.66 or 6.2% for WTI and $3.73 or 7.6% for Brent. Friday’s PMI data from China disappointed the market as did the US numbers, thoughts of a September rate rise in the US are receding although not certain, Friday’s Jackson Hole meeting should provide more and hopefully from Stanley Fischer who is the mechanic rather than the oily rag.

This morning things have got worse with markets falling dramatically, led by China for whom the bell apparently tolls, equities and commodities have fallen together and with the tide down it is possible to see who has shorts on, so to speak. In oil, things have not changed, the fundamentals are still weak and WTI is $38.94 and Brent $43.62 as I write and with the rig count showing a rise of two oil units last week and WTI net length down another 17% over the same period there is little sign of support. Labor Day is only two weeks hence and after that refineries will take less crude for a while, chances of any real draw in crude stocks are diminishing and Opec is in disarray.

It is this point that one should consider as a possible, only possible, area to grasp at a straw or two, with Iran saying at the weekend that an emergency Opec meeting might be ‘effective in stabilising the price’. So whilst the world wrestles with deflation and a serious lack of growth, demand falling even at current prices might lead to a face-saving act of goodwill from the Saudis should they wish to do so. It wouldn't help the strategy of regaining market share of course and there is no sign of production restraints from the US or Russia but if it looks serious enough to warrant such a meeting it may just happen. Those long positions at a five year low indicate that the market is a one way bet at the moment, despite the fundamentals being awful it may just be worth investigating what would happen if the Saudis called an emergency meeting and a lot of shorts had to be covered in a hurry….

San Leon Energy

On a day when there is red ink all over the market and in the oil sector especially, the sight…

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San Leon Energy Plc is an oil and gas company. The Company develops conventional and unconventional assets in Europe and North Africa, from exploration to monetization. Its segments include Poland, Morocco and Ireland. The Company holds participating interest in the Durresi Block, offshore Albania. The license area, which covers approximately 4,200 square kilometers, contains the A4-1X gas/condensate discovery and several undrilled oil and gas prospects. The Company holds over 2.4 million acres of licenses in France, which are under application. It holds a net profit interest (NPI) on the Barryroe License, which is located in the North Celtic Sea, offshore Ireland. The Company has interests in the Tarfaya and Zag license areas and offshore licenses, Foum Draa and Sidi Moussa. It holds approximately seven licenses in Poland. The Company holds approximately four licenses in Cantabrian-Pyrenees basin, five licenses in Ebro basin and one license in Duero. more »

LSE Price
32.1p
Change
0.3%
Mkt Cap (£m)
146.3
P/E (fwd)
n/a
Yield (fwd)
n/a

Gulf Keystone Petroleum Limited (Gulf Keystone) is a holding company, which is engaged in the oil and gas exploration and production. The Company operates in the Kurdistan Region of Iraq. It operates through segments, including Kurdistan Region of Iraq and United Kingdom. The Kurdistan Region of Iraq segment consists of the Shaikan, Ber Bahr blocks and the Erbil office, which provides support to the operations in Kurdistan. The United Kingdom segment provides geological, geophysical, engineering and corporate services to the Company. It operates in the Shaikan oil field. The Shaikan block is situated over 85 kilometers northwest of Erbil, covering an area of over 280 square kilometers. more »

LSE Price
224.5p
Change
0.5%
Mkt Cap (£m)
502.3
P/E (fwd)
7.9
Yield (fwd)
4.6

Wentworth Resources PLC is a Jersey-based independent oil and gas company. The Company owns gas production and exploration assets in the Rovuma Basin of East Africa. Its interests include production, appraisal and exploration potential in the Mnazi Bay area, in the Rovuma Basin of Southern Tanzania, Africa. It operates through three business segments: Tanzania Gas operations, Tanzania Power operations and Mozambique Gas operations. Gas operations include the exploration, development, production and transportation of natural gas and other hydrocarbons, and these activities are carried out in Tanzania and Mozambique. The Power segment includes the production and distribution of electricity in Tanzania. It also owns downstream oil and natural gas assets, including a gas processing plant and pipeline system and operates an 18 megawatt (MW) gas-to-electricity production facility in Mtwara, Tanzania. more »

LSE Price
20p
Change
-1.2%
Mkt Cap (£m)
37.3
P/E (fwd)
6.6
Yield (fwd)
n/a



  Is LON:SLE fundamentally strong or weak? Find out More »


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About Malcolm Graham Wood

Malcolm Graham Wood

Malcolm has over 30 years' experience in the Oil & Gas sector and is a widely used media source. He often appears in print and on screen, and also writes an acclaimed daily blog read by much of the resources industry as well as investors both institutional and retail.Malcolm is a Founding Partner of HydroCarbon Capital, which provides independent advisory services to the Oil and Gas sector. He is a Director of the Maven Income and Growth VCT 4 PLC, a venture capital trust listed on the Premium segment of the main market of the London Stock Exchange.He started his career at Wood Mackenzie in 1979. He was an inaugural member of the No 1 Extel rated James Capel Oil & Gas team and also headed up corporate broking, acting for the Government in sales of British Gas, Britoil and other utilities. Subsequently he became Head of Equities and main board Director at Williams de Broe before moving to Teather & Greenwood. Following that, he ran his own consultancy for several years, acting for a number of quoted and private companies as well as being a board member and advisor. He has been a Director at Noble and then Westhouse Securities and has extensive contacts in the Oil & Gas sector globally. More recently Malcolm has been the lead advisor to an HSBC Zurich trust on oil, gas and energy investments as well as working with the oil team at VSA Capital.- See more at: http://www.malcysblog.com/about/#sthash.Jdn1d7dK.d... more »

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