WTI (Aug) $81.91 -30c, Brent (Sep) $84.85 -18c, Diff -$2.94 +12c
USNG (Aug) $2.16 -17c, UKNG (Aug) 73.21p +0.3p, TTF (Aug) €31.93 +€0.43

Oil price

Oil fell last week, just a little but in what has been a quiet market since Independence Day the Fed’s hard stance was opposed by the inventory stats which were better than expected. The first hurricane of the season was bad but Beryl didn’t really hit oil installations either offshore or onshore refining apart from modest shut-ins. 

This week has started modestly weak, yesterday the Chinese data was worse than the whisper in both retail sales and industrial production and came in at 4.7% against the expected 5.1%. A strong dollar won’t turn until the Fed cuts rates in the autumn, before or after the election I wonder but maybe they will be like the BoE and wimp out of a decision that might be construed as political…Finally on that front the attempted assassination of President Trump has probably strengthened his chances much to the chagrin of the Feds who left the sniper to get on with the job.

Sound Energy

Sound has announced that subsequent to the Company’s announcement of 14 June 2024 regarding the entry into a conditional binding Sale and Purchase agreement for the partial divestment by the Company of its Moroccan assets by way of the disposal by the Company of the entire issued share capital of the Company’s wholly owned subsidiary Sound Energy Morocco East Limited to Managem SA, Sound Energy has received confirmation of the approval of Managem’s Board of Directors to the Transaction, satisfying one of the conditions precedent to the SPA.   

The Transaction remains conditional upon the remaining Conditions Precedent to the SPA, as disclosed by the Company in the announcement of 14 June 2024, being satisfied or waived and further announcements will be made, as appropriate, in due course.

Commenting, Graham Lyon (Executive Chairman of Sound Energy) said: 
“We are very pleased to have received Managem’s formal board approval for the Transaction and we are working to effect completion of all remaining conditions precedent to the SPA in the near term. Meanwhile a transition plan is being executed with the Managem team to ensure a smooth hand over.”

Everything here is pointing to a deal being near to closure, clearly the full Managem board approval is a key milestone and one would expect the remaining approvals in Morocco to fall into place before long. The other point is that ‘a transition plan is being executed with the Managem team’ and that should keep momentum going on the project and also move the pipeline project forward whilst ensuring a ‘smooth handover’. 

KeyFacts Energy Industry Directory: Malcy's Blog