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