(MENAFN- ProactiveInvestors) WTI $50.04 -$2.65 Brent $53.11 -$3.31 Diff $3.07 -66c NG $2.88 -12c
Oil price
Forget the prices above which are last nights close in the US forget even the modest rally that took place in the Far East this morning as I write WTI is trading at $48.72 and Brent at $51.41. Not only has WTI taken out the new big figure but Brent probably will anytime soon indeed puts for June have traded in the $20-30 range on some markets. The Saudis have announced their pricing for February which as usual ties in with the model lower for Europe and higher for Asia whilst for the USA apart from some increase on heavy crude all the rest of the prices are down.
There is simply nothing at the moment that the bulls can hang their hat on nor will there be quite yet looking at surveys gives a little hope the rig count fell another 29 rigs last week to 1811 still interestingly above this time last year but 113 down on the month. Canada is more telling down 48 at 208 and is well below this time last year their market is fragile I suspect. The weekly retail gasoline prices should be feeding through to the economy by now at $2.21 a gallon is down another 8.5c on the week $1.18 on the year do the math as they say 50bn miles a month times that saving…Finally dont forget that at the moment a number of E&P companies are still protected by hedges which when they run out will likely reduce drilling activity drilling intentions indications are beginning to tell you that already.
So no respite yet and no sign of the ‘C’ word as with the bulls already carried out the oft awaited capitulation hasn’t quite happened yet I feel. We are however getting closer to one or two longer term support levels so if you are looking for a straw to cling on to you need WTI to defend $45…
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The one thing you can always be sure of is that when all is looking gloomy Plexus will come up with an order today is no different. The company has won an additional three well order from Brunei Shell Petroleum for POS-GRIP wellhead systems worth £1.5m which proves not only that its technology remains top drawer but that its clients think so too BSP has worked with Plexus since 2006.
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I suspect that I will be writing a fair bit about Gulfsands over the next few days so in order not to repeat myself I will keep this one fairly brief. Today’s announcement is that the DRC-1 in the Rharb Centre Permit in Northern Morocco has encountered a gas bearing reservoir of ‘excellent’ quality. With 53m of gross thickness of reservoir sand and net gas bearing sand thickness of 16m producing evaluated average gas saturation of 68% and average porosity of 34% the company are pleased even if the well didn’t actually get to TD.
As I said there will be much to write about Gulfsands as there is corporate activity coming up that retail shareholders should look at very carefully indeed. Recent activity in other stocks has showed that apathy can be very dangerous and if shareholders dont want this company to be taken over on the cheap they should watch everything very carefully. I am seeing the management tomorrow so should have more to add after that…
And finally…
The long FA Cup weekend continued last night with the HubCap Stealers just overcoming the Crazy Gang 1-2 elsewhere there was a bore 1-1 draw between Burnley and Spurs. Tonight sees The Toffees host the Hammers and at the risk if upsetting one particular reader I suspect that Everton are resting silverware hopes for the season on 90 minutes tonight. The draw for the next round continued to keep the big clubs apart much to the delight of Cambridge who will welcome the Red Devils in what must be a televised game…
It will become know as the £20 grand gasper as Gooners keeper Szczesny is fined that amount for having a smoke in the dressing room showers after losing at Southampton…
The NFL playoffs kicked off this weekend with the Baltimore Ravens being the only wildcard to progress. They beat the Steelers 30-17. They face the Patriots next…
Despite having won four more regular season games than their opponents the Cardinals lost to the Panthers 16-27. The Panthers take on defending Champions the Seahawks next weekend.
The Colts eased past the Bengals and will face Peyton Manning and the Broncos in the next round.
The final game saw the Cowboys hold off the Lions 24-20 after trailing 14-0. A big win for the Cowboys but they are the clear underdogs when they take on the Packers at Lambeau Field next week.
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