WTI (Jan) $58.55 -10c, Brent (Feb)* $62.38 -$1.21, Diff -$3.83 -86c
USNG (Jan) $4.85 +29c, UKNG (Jan)** 74.28p -2.46p, TTF (Jan) €28.37 -€1.115
*Denotes Brent January contract expir
** Denotes UKNG December contract expiry on Friday

Oil price

A very mixed couple of days trade, the Thanksgiving holiday made for thin markets and with Brent expiring on Friday night it was technically slightly out of sorts.

But we are now more bullish as the Opec+ meeting not only held quotas but did so until Q2 next year which the market liked. It is also making it perfectly clear that it is not going for market share as some so-called expert commentators have said recently and the cartel are looking ahead to 2027 by commissioning D&M to assess country production levels ahead of then. 

Opec+ are smart enough to know that their 50% of the market still gives them control over the marginal barrel which they can use when they need to…

Hunting

Hunting has announced that Hunting Energy Services Production Technology, Inc., Hunting’s recently acquired business which aims to optimise oil reservoir performance and recovery rates, has secured its first sampling and testing contract award in Brazil.

This award represents a geographical breakthrough for OOR into the highly active South America market, OOR’s first new territory under Hunting’s ownership since the business was acquired in March 2025, and marks a significant strategic milestone for the business and the wider Group.

The contract, awarded in November 2025, is with a Brazilian based oil and gas exploration and production company and covers the sampling of 20 wells across 11 different fields, all located onshore in the north of Brazil. Sampling operations are already underway and will continue through the coming months, with field implementation and analysis expected in 2026.

This award demonstrates the level of customer interest and long-term potential of OOR’s patented enhanced oil recovery technology, which optimises reservoir performance and oil recovery rates across the life cycle of a typical production well by providing the following benefits to operators:

• It improves ultimate recovery of oil reserves from a reservoir;
• Is a cost-efficient technology that has no capex requirements and is simple to deploy;
• Lowers the water cut during end-of-life production;
• Lowers hydrogen sulphide levels in production offtake which reduces ongoing maintenance and mitigation costs; and
• Extends the life and increases the economic returns of a producing field.

As of 1 January 2026, OOR will be incorporated into the Subsea Technologies operating segment, as Hunting continues to grow its integrated full cycle subsea platform.

Jim Johnson, Chief Executive of Hunting, commented:
“This contract represents a strategic milestone for OOR and for the wider Hunting Group.  Not only does it unlock the technology’s potential in an important geographical region, but it demonstrates how OOR can leverage Hunting’s diverse global footprint to accelerate its long-term commercial potential. 

“The acquisition of OOR, in addition to that of Flexible Engineering Solutions earlier this year, demonstrates that the Company continues to make good progress in expanding Hunting’s global subsea offering. 

“I am delighted to see this continued strategic progress by the business development team and look forward to updating investors on these initiatives in the coming months.”

This is good news for Hunting on many levels, it validates the acquisition in its own right and in particular it is an important breakthrough for OOR geographically as it marks the first sampling and testing contract in Brazil. 

Getting this ‘significant strategic milestone’ is also important for the Group, an important area, South America in general and Brazil specifically, will boost chances of contract success for a number of businesses in particular FES which I recently visited and also has great contracts in the region. 

I see the subsea division in particular making substantial progress in South America as the technology it has will, as in this case in secondary and tertiary recovery technology, make substantial gains and in a high margin segment of the business add a great deal. 

With Hunting announcing a major analyst presentation on the subsea division in January and I understand an analyst visit to FES before long, I think that the market is set to learn a great deal about this fast growing, high margin part of Hunting’s business. Accordingly I see the company making good, profitable progress in the area and I keep my 500p TP with plenty of confidence. 

Original article   l   KeyFacts Energy Industry Directory: Malcy's Blog