Today’s Blog – Monday 14th March 2016

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Introduction

Today we publish a “flash” blog only – its a public holiday here in blog-land.

Commodity prices

Crude had a good week last week, with Brent fairly flat on Friday, but up ~4% for the week, closing at US$40.39.  WTI did even better, finishing ~7% for the week at its Friday close of US$38.50.

The IEA’s monthly report was generally bullish in tone – sort of signalling the “worse is over”.    Others disagree – e.g. Goldman Sachs – who consider that the reality of high inventories cannot be ignored and that US$40 oil might encourage production to come back too soon.

The BHI weekly rig report continued to decline – with a reduction of 6 oil rigs and 3 gas rigs.  This metric will no doubt be closely watched by vampire squid types to see if US$40 oil does in fact bring on new activity.

Henry Hub had a strong week (from a very weak base), closing up ~9% at US$1.82.

Quote of the day

“Computers are useless – all they give you are answers”. – Picasso

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