Usually that is the case, at the moment there is a ~$8 difference as inventory in the USA hits new highs. Will take some time to burn through this extra inventory and with production hitting new highs this downwards pressure on WTI could be a long term issue.
Hence my concern for NTOG and other USA oil and gas companies (MAGP, NCT ,etc)
Brent beginning to move north again, $65 won't be long off. It only takes some instability or an incident and it will fly, 10-15% gains. Think we might see the drill at HP turning sooner than we think. Most of the hold on spend was the uncertainty in where the bottom was, now its bottomed they can plan with more certainty.
Nice to see a recovery in NTOG sp despite the oil price coming back. Oil experts are still not raising their heads above the radar in giving a proper recommendation. Still bit surprised oil didn't go higher today after West Virginia train derailment. Its not the 300,000 barrels lost that should make a difference but how busy that line is and how long it will take to get back to normal.
Datafeed and UK data supplied by NBTrader and Digital Look.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk.
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.