WTI $43.96 -70c, Brent $54.43 -$1.48, Diff $10.47 -78c, NG $2.81 -11c

Oil price

WTI expires today and is weaker into the bargain, currency apart there are no reasons to think that the next month will be any better. Yesterdays rebound in the greenback was about the only support for the oil price, even the falling rig count hasn't pressaged any fall in production-yet…

Yesterday it was the turn of the Kuwaiti oil Minister to keep the lid on any expectations the market may have had regarding the June Opec meeting as he said that the cartel needs to maintain production to defend market share. With Iraq apparently heading back into the production record books after the recent weather disruptions and Libya back at 500/- b/d there is little good news for the bulls. The Israeli election result and the apparent breakdown in the Iran nuclear talks (11 days til deadline) are merely straws to be clutched at.

Tullow - Over the moon…

Whisper it quietly but things are starting to look a bit better for Tullow who today announce an expansion of its debt facilities by $450m. Its not the actual availability of the debt that counts, more the combination of the proactive actions of the management and the confidence being shown by its lending bankers in the company at current oil prices. The increase gives the company a buffer in case of any operational glitches or, heaven forfend, any further delay at TEN…Was being kicked out of FTSE the nadir for the shares, whatever happens Tullow is at long last playing to its strengths and realises its here for the duration.

Gulfsands - Total eclipse of the value… 

The bad news just keeps on coming for Gulfsands who have announced that they are in a dire state of affairs on the financial front, not that one needed an RNS to tell you that. Clinging on to Syria and with none of the asset sales yet made has left them with commitments in Morocco that they appear to to be unable to finance. With working capital of $3m to start with they have need for $11m in Morocco, most of which is needed in the next 3-6 months plus running costs and restructuring and corporate overheads of $8.5m including Tunisia and Colombia expenses. Overall the company needs at least $15m and that doesn't include the repayment of the Arawak loan and…

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