WTI $58.24 -44c, Brent $61.14 -33c, Diff -$2.90 +11c, NG $2.87 -4c, UKNG 43.75p -3.25p

Oil price

I managed to get most of the IEA report in yesterday, it was followed by the Opec summary of the market which was not very different from the others. All of them are still concerned about the virus and all worry to a greater or lesser degree about the variants that could affect their forecasts.

Opec concur with the IEA and see demand picking up strongly in 2H 2021 after a poor 1Q and slow recovery in 2Q. Their numbers suggest consumption of 93.22m b/d in Q1with the full year number of 96.05m b/d up some 5.79m b/d y/y.  As for supply they are quite bullish, 1Q has seen some modest increase in Russian production and the rest of Opec is in line with quotas and of course the KSA 1m b/d cuts continue through March.

Putting this together, Opec expect substantial stock draw in the  second half of this year in line with both other reporting organisations. A bit like the Bank of England yesterday who reported worst ever GDP numbers but say the ‘tinderbox is waiting to be lit’ for significant growth later in the year.

Today is the celebration of the Lunar New Year, the Year of the OX, I wish all participants a happy and prosperous New Year.

PetroTal Corp

I recently interviewed Manolo Zuniga, CEO of PetroTal Corp. The interview was very popular and a number of people who missed it have asked for it to be repeated so here is the link.

Core Finance CEO interview: Manolo Zuniga, PetroTal

KeyFacts Energy Industry Directory: Malcy's Blog