WTI $41.74 +$1.00, Brent $43.58 -3c, Diff $1.84 -$1.03, NG $2.38 +2c
Oil price
A very short blog this morning, oil markets are relatively quiet, there is little company news and Oil and Gas week is in full swing in London.
WTI bounced yesterday and US oil companies followed that on the Street although reasons were somewhat uncertain. Most traders thought that geopolitical risk had just gone up whilst others felt that increased bombing of ISIL meant that less oil would come onto the market from hooky sources, rather clutching at straws I think. Retail gasoline prices fell again, last week the average price of a gallon was $2.178 down another 5.7 cents on the week, 71.6 cents cheaper than last year.
Word was also out that Opec production fell in October for the third consecutive month, if so I’m afraid I remain a touch cynical on how much that is going to help the market, probably posturing ahead of December 4th.
Tullow Oil
Tullow has announced that its Emesek-1 exploration well in the Northern Lokichar Basin, Northern Kenya did not encounter hydrocarbons, there was the usual guff about being a useful addition to our database etc…
Oil and Gas Week
The week started with the grown ups as usual, the good and the great paraded and spoke big picture stuff, the nitty gritty gets under way this morning…
Overall the meeting was generally described as being positive if realistic about the market over the next 12-24 months. The critical role of the service companies in reducing costs was brought up more than once. Finally what is core and what is not was discussed with conclusions that alliances and collaboration will be the name of the game in today's world.
And finally…
Two major footy things, Ireland got their win last night and are through to the finals of France 2016, tonight sees the friendly between England and France at Wembley.
And Muzza started off well, he wants to keep his powder dry over the next few days…
