WTI $62.01 +38c, Brent $68.07 +23c, Diff -$6.06 -15c, NG $2.88 -13c
A pretty good week for the oil price as all sorts of pressures took their toll and in modest volumes. The rise yesterday was following the EIA inventory numbers for the last week of 2017 which showed a much bigger fall in crude stocks, but an equally large rise in products.
Crude fell by 7.4 million barrels against forecasts of 4.5 million and at Cushing by 2.4 million barrels which the punters like. However, as expected by me earlier in the week, refinery runs went up again, this time to 96.7% a level not seen since 2005.
Confused analysts saw gasoline stocks up by 4.8 million barrels and distillates up by 8.9 million, which is why I was expecting the refinery run rise. The extreme cold weather will call for a lot of heavier product as soon as it can be moved.
Cabot (CAB) continues to please. Today, they announce the results of the 10-32 Rainbow sidetrack well which has produced at the extrapolated daily rate of 344 barrels per day of oil. This will be put on production in January at the rate of 200 barrels per day for reservoir management purposes. This well has ‘exceeded expectations’ and will further improve the project economics, with 10 further sidetracks planned, 2018 looks most interesting for Cabot.
Egdon/Europa Oil/Union Jack
The curse of Wressle continues to strike as the above partners (Egdon (EDR), Europa Oil (EOG), Union Jack (UJO)) have announced this morning that at the planning inquiry their appeal has been rejected.
The current planning for the existing well site has been retained until 28/04/18, which I suppose gives them a final chance, more if I hear from any of the companies involved.
It has been enjoyable covering Thalassa (THAL) over recent years, but with the completion of the WGP deal their involvement in the oil services business comes to an end, for the time being. With net cash of $21.3 million (£15.7 million), the company is in good nick and followers of the indomitable Duncan Soukup may well still have the chance to make money….
The postponed Welsh Grand National has been re-scheduled for tomorrow at Chepstow and there is a good card at Sandown as well.
Last night in the Prem two magnificent goals meant that Spurs could only draw 1-1 with the Hammers who are looking increasingly more confident.
This weekend sees the FA Cup 3rd round where all the big clubs finally make their entrance. I can’t mention them all, but the standout fixture is tonight where the Merseyside derby pitches the HubCap Stealers against local rivals the Toffees.
The Noisy Neighbours have Burnley and the Seagulls v the Eagles, always big rivals make up other all premiership ties. The Rams go to the Theatre of Dreams while the Gooners are at the Forest, Chelski go to the Canaries and Spurs entertain Wimbledon.
Amongst many other such great names as Fleetwood Town, Burton Albion, Carlisle and Yeovil all get the opportunity to be giant killers.
And down under after further wicket giveaways by such as Root and Bairstow and Mo, England are facing another uphill struggle…
Malcolm Graham-Wood is an independent oil industry expert and freelance contributor, not a direct employee of Interactive Investor.
This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.