WTI (May) $74.37 +$1.40, Brent*(June) $78.60 +1.01, *Diff -$4.23 -$1.08. *Brent May expiry
USNG* (May) $2.10 +7c, UKNG* (May) 108.0p +2.5p, TTF* (May) €44.95 +€1.95. *April expiry

Oil price

Today marks the end of the week, the month and the first quarter and with the Opec meeting waiting around the corner on Monday this is no weekend for any but the bravest or foolish traders to put their head over the parapet.

Having said that I’m not expecting any surprises from the cartel who are probably thinking that the technical market is looking pretty good and there is no need to change quotas. The Iraqi pipeline to Turkey is closing up and may take off the market what Opec won’t over the next week or three while French protesters keep refineries shut therefore creating a shortage of products.

Add to all that the US inflation data due later, the February PCE is hoped by the market to be in line with last month at 4.7%, itself a slightly high figure. Inflation data from Spain and Germany this week has helped a good deal.

Jersey Oil & Gas 

Jersey Oil & Gas, an independent upstream oil and gas company focused on the UK Continental Shelf region of the North Sea, is pleased to provide an update on the status of the GBA farm-out process.

The Company is in advanced exclusive negotiations with a significant UK North Sea operator.  Heads of terms have been agreed for the farm-out of a material interest in the GBA licences to this company and both parties are working towards finalising a fully termed agreement in the near future.  An exclusivity period until 30th April 2023 has been agreed.

Andrew Benitz, CEO of Jersey Oil & Gas, commented:
“We are pleased to be in advanced exclusive negotiations with a well-funded industry heavyweight and whilst there can be no guarantees of a successful conclusion, we are aiming to finalise the farm-out in the near future and look forward to updating shareholders shortly.”

This is excellent news from JOG who have been telling the market that this is an attractive asset for a number of years and now the team that have been working flat out on the deal are within touching distance of their dream.

No one deserves the credit more than they do and I hope that it gets over the line in April as per the exclusivity period they have signed with the unnamed but ‘significant’ North Sea operator. I am looking forward to finding out more and hopefully interviewing Andrew Benitz in due course.  

Gulf Keystone Petroleum

Gulf Keystone is providing an update on its announcement dated 27 March 2023 regarding the shut-in of the Iraq-Turkey pipeline on 25 March 2023 and suspension of exports. GKP announces that it expects to shut-in production processed at Production Facility 1 (“PF-1”) today, while production flowing into Production Facility 2 (“PF-2”) will continue into storage tanks at reduced rates for around another two weeks before also being shut-in. The combined storage capacity at PF-1 and PF-2 is approximately 150,000 barrels.

The Company understands that discussions between the Kurdistan Regional Government and the Iraqi Ministry of Oil are ongoing and continues to believe that the suspension of exports will be temporary.

GKP is closely monitoring the situation and will provide further updates to the market, as appropriate.

Nothing to add here nor anything new, my recent comments after speaking to GKP still stand. 

KeyFacts Energy Industry Directory: Malcy's Blog