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Today we have a “flash” blog only – as it is a public holiday in some parts of Australia – to celebrate labour day. Unfortunately the hard won benefits for employees (such as holiday pay) secured by the labour movement don’t seem to extend into the furthest reaches of the modern Uber economy such as blogging.
Crude oil prices closed up at the end of last week, with Brent hitting US$48.13 and WTI finishing even stronger at US$45.54. The best rig count numbers for some months helped the bulls, with a total rig count reduction of 29 (of which 26 were oil directed rigs). This was the fourth week in a row of rig reductions and hit operators across all of the main tight oil plays – even the “quasi-unconventional” and otherwise resilient Permian was affected.
Natural gas prices experienced a mild 1% up-tick on Friday, closing at US$2.45, in what has otherwise a horror week at Henry Hub. Mild Autumnal weather, high storage levels, an El Nino affected expected warmer winter and poorer prospects for LNG exports all were contributors to the fall.
Company news – Woodside Petroleum
Again using the “legal lite” disclosure medium of the press rather than formal ASX release, WPL’s CEO, Peter Coleman has stated that his company’s recent offer for Oil Search was a “full price” and there was little appetite to sweeten the deal.
Control of this deal seems to have slipped from WPL’s hands at a crucial point (possibly when some sort of leak boosted OSH’s share price prior to WPL’s disclosure of its non-binding offer) – it is hard to see how the small premium offered to OSH could thereafter have been accepted.
Company news – Origin Energy
As noted on Friday morning, ORG easily closed the institutional component of its rights issue on Friday. Its shares will commence trading again tomorrow.
Quote of the day
Another one for keen followers of The Donald’s political progress:
“We might have to admit that he is more than the attention-seeking buffoon he appears to be. It may be that he is a attention-seeking, buffoonish genius”. The Economist