WTI $67.07 +25c, Brent $72.02 -4c, Diff -$4.95 -29c, NG $2.69 +1c
The market paused yesterday and took stock of a week that virtually had everything, except the denouement of course. The Donald has not yet pressed the red button but knows he can when he wants and Syria is the perfect opportunity. If he hasn’t after the weekend it may quieten down.
Most of the rest of the news was positive, Barkindo said that global stockpiles would be down to satisfactory, i.e., five-year levels by the third quarter and no surprise, Saudi Arabia locked in another month of starvation rations. He also confirmed that OPEC would talk with the Russians and others about extending the agreement into 2019 and beyond, on top of everything else this only polished the obelisk.
I will go into the OPEC monthly on Monday if possible, but it adds to the EIA in its increasing global demand numbers which will be another boost for the second half of the year. Overall much to think about but the signs are that oil isn’t coming down any time soon.
Echo (ECHO) has announced that it has produced gas to surface at its first workover well in Argentina.
The first well in the three-well workover programme at Fracción D, CS-85 perforated across the Springhill formation and successfully flowed gas to surface without intervention and through the de-gassing system at an estimated rate of 2 million standard cubic feet per day through a 20/64″ choke.
With a tubing head pressure of 1,100 psi this seems to have at least to start with be a dream well.
The testing unit hasn’t even got on site yet and, when it does, in 10-14 days all the tests will get underway, obviously investors should caution that this is early day news but without doubt is the best possible start for the Echo team.
In the meantime, the rig is off at the weekend to the next site, no messing around here!
Zenith (ZEN) has announced that they have terminated the exclusivity agreement for the Central Asian assets that they had entered into discussions to purchase. It seems that there was not enough financial information for them to do the due diligence so clearly the opportunity has to be let go.
Whilst this is disappointing it is totally understandable, but the company has at least proved that it is trying to put into place the diversified strategy that is has promised shareholders. It’s better to have loved and lost…
The feature of the weekend is the Grand National which is at 5.15 tomorrow at Aintree, times change!
The Chinese GP will give Vettel a chance for three wins to open the season which Lewis will hope to avoid…
And in the Prem the key fixture at the top is Spurs hosting the Noisy Neighbours and at the bottom The Eagles host the Seagulls which we all know is a highly competitive derby as they say…
Malcolm Graham-Wood is an independent oil industry expert and freelance contributor, not a direct employee of Interactive Investor.
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