(MENAFN- ProactiveInvestors) WTI 49.57 +$1.33 Brent $54.75 +$1.76 Diff $5.18 +43c NG $2.68 -1c
Oil price
Further gains in the oil price with very little to actually support the optimism. US analysts believe that the strike will not only affect refined products especially gasoline but might spread to some oil production which in my view is further straw clutching. It should be noted however that this week retail gasoline has actually risen for the first time in months being up 2 cents at $2.06 a gallon. Fundamentals are still weak Opec production for January was up with rises from Saudi and Iraq offsetting the fall from Libya and of course all the falls in rig count etc will take time too come through.
Exxon ()
Exxon comfortably beat the whisper coming in with earnings of $1.56 against expectations of $1.35 bit as with all the companies its the future the market is interested in and Exxon didn’t disappoint here suggesting that it was ‘considering acquisitions to capture opportunities to high-grade the portfolio’.
()
As usual more after the webcast if appropriate but has missed the forecast and after post-tax charges reported a loss for the 4th quarter. has decided to go for the hair shirt approach which the market quite likes although it doesnt really have much option. With the borderline irresponsible raise in the divvi last year and a comment in this statement that ‘the dividend remains our 1st priority’ the company’s hands are tied just to remain cash flow positive there has to be a massive cut in capex now $20bn against previous guidance of 24-26bn and significant asset sales $5.3bn+ must be sold this year. Time will tell whether the above two stocks are making the correct call if the capex reductions across the industry lead to a sharp pick-up in the oil price next year may find the cupboard is bare if not it will be the one who is laughing…
BG ()
Still without a CEO until next month Andrew Gould has put out a holding set of figures which include a hitting of production targets and a substantial impairment charge of $8.9bn. But its not all doom and gloom for Helge as when he arrives a long term capital programme will be coming to an end and with QCLNG coming onstream and Brazil producing 125/-+ b/d cash flow even at $50 is creditable. And dont forget my old favourite the LNG business continues to shine and beat the estimate again last year making $2.544bn more than guidance. It will be a few months before the Mr Lund has been able to assess the situation and I suspect that there will and should be substantial changes but as I see it maybe the worst of BG’s problems are behind it you wouldnt want to be running the capex from the last 8 years starting at $50 oil…
And finally…
The transfer window closed with a whimper only Chelski getting out the cheque book and even then only after the paying in book had been troubled…Spurs rented out Lennon but wouldnt sell Adebayor to Sam who also lost Fletcher to the Baggies…Tonight sees the FA Cup replays with the most interesting being the visit of Cambridge to Old Trafford. The winner gets to play the winner of the Blades v Preston replay and Fulham host the Maccams as well.
England cricket selectors dont need a lot of help to look complete plonkers and yesterday reject Ben Stokes scored 151 against South Africa and took three wickets into the bargain. Playing a batsman at number 8 was always particularly stupid and as ever England’s chickens in this case the selectors have come home to roost
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