WTI $60.21 +1c, Brent $66.72 +20c, Diff -$6.51 +19c, NG $2.45 +4c
As expected, oil ended the week on an upward trajectory but is flat this morning. The week provided a rise of $2.70 for WTI and $2.49 for Brent with inventory falls, further escalation in the Middle East and Tropical Storm Barry all contributing. Barry did develop into a hurricane briefly as it went onshore but soon petered out but not before 1.1m b/d of oil was shut in from the Gulf of Mexico.
The IEA concluded the week of reports and was the most bearish of the three, suggesting that US output increases next year will more than cover global demand, at present next year is looking a bit sloppy. The rig count showed a fall overall of 5 rigs to 958 with oil declining by 4 to 784 units.
An operational and trading update from Lekoil this morning with production in 1H 2019 of a net 2,329 bopd (2018 2,042 bopd) and guidance for 2H 2019 of ‘circa 2,324 bopd’. The company is planning for a multi-well programme subject to finalising of funding in order to substantially increase production.
Meanwhile, costs for 2019 are in line with market expectations with operating and G&A costs expected to fall by 25% and capex is expected to be $5.1m of which $2.7m was spent in H1. I’m watching Lekoil more closely now but my view on this is that there is still much that is left unsaid, so to speak.
Egdon Resources/ Union Jack Oil
An update on the Biscathorpe-2 well has revealed a potential working petroleum system in the Dinantian reservoir. Results show good quality hydrocarbon extracts which are comparable to the known oil-bearing Westphalian interval found at the Keddington oilfield. The oil column is likely to be ‘approximately 35m’ in the top of the Dinantian with likely residual oil below.
Considering this well had been relegated to the back burner of recent effective dusters, the entrepreneurial nature of someone in the exploration department deserves rewarding. This somewhat changes things, for the better and continues the remarkable run of good fortune being enjoyed by the UK onshore companies at the moment.
Where does one start? I guess it has to be at Lords where the edges of the seats will all be being replaced today after both sets of supporters entertained winning thoughts. New Zealand, 11/4 at the off were 20-1 ON in running and must have thought their day had come. With the champagne super-over also going down to the wire it ended up being a real humdinger. Man of the match Ben Stokes ultimately delivered the goods and for England, favourites from the start, it was never in doubt…
Over at Silverstone, another gem of a race was taking place, with Lewis challenging Valterri and eventually winning via a safety car piece of luck helping out strategy. Behind them though was a thrilling duel between the youngsters LeClerc and Verstappen although Vettel managed another 10 point penalty for getting involved, again.
And as for Wimbledon, Djokovic and Federer put on another epic battle, I was sure when I turned over a couple of times it was about to end but it lasted until the new rules about tiebreaks in the final set ended the match, they might still be going now if not for that. So, Djoko edged it but only on the slimmest of margins.
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