WTI $51.91 +27c, Brent $57.93 +6c, Diff $6.02 -21c, NG $2.51 n/c
Oil price
Traders I have spoken to this morning called yesterday turgid but at least it stayed in the range, it may not do that today as we have an avalanche of economic data to assess. Plenty of Euro data including UK inflation, in the US it is retail sales which should post the first good month of the year but all eyes will be on China. Last night saw their BoP data which looked truly awful as the weak import number at -12.7% was trumped by worse export stats which fell 15% against expectations of a rise. This left the monthly balance at +$3.1bn against a forecast of nearer $40bn, surely shome mishtake…We will probably find out more tonight as we get GDP figures for the 1st quarter, expectations are around 6.9% against 7.3% last quarter so watch this space.
Opec didn't offer any succour as their bulletin hit out at the other 70% by saying that 'Non-Opec producers are adopting a go-it-alone attitude with scant regard for the consequences'. Saudi Arabia compounded the situation by saying that it would only cut if everyone else did and that they were transparent, so somewhere between no hope and Bob Hope I would say.
Finally on sanctions you will have noticed that Russia and Iran are getting to be big time wily and have worked out that while both are on the receiving end of the controls there is no reason to stop one selling another a massive air defence system, I heard someone call the US State Department chumps recently…. Bring in Frank Underwood I say.
Wood Group
Further business with EnQuest today for Wood Group as they sign a new 5 year contract across a range of engineering services for Thistle, Heather and Northern Producer offshore assets in the North Sea. The agreement includes extension options for a further five years. At 682p Wood shares are 30% off the bottom after results and presentations from the company have allayed fears of a melt-down in oil service plays such as them. A chartist would tell you that should the rise continue, closing over 700p would be very bullish indeed with the next stop being 760p.
Gulfsands Petroleum
Gulfsands has announced that it has removed Mahdi Sajjad from his position as CEO 'as permitted by the company's Articles of Association'. He…
