Interactive Investor

The Oil Man: Tullow, Wood Group, Independent

WTI $49.88 +$2.03, Brent $50.61 +$2.03, Diff -$0.73 n/c, NG $2.86 -3c

With a skip and a jump the oil price is almost back to pre-Brexit levels; this is mainly down to better inventory stats this week, where both organisations saw a draw of around 4 million barrels.

In the background there are a number of machinations, but the rise in refinery utilisation to 93% ahead of the Independence Day celebrations is probably key.

Elsewhere, a fall in imports helped as did US production falling by 55/- barrels er day (b/d) and Iraq output down by 60/- b/d last month. With the Norwegian strike still imminent pressure is on the upside.

Wood Group

A very tame update from Wood this morning: no change to earnings before interest, tax and amortisation guidance of a 20% fall from last year's levels and the company is benefiting from their asset-light, predominantly reimbursable business model combined with significant overhead cost savings.

Tullow Oil

A trading statement and operational update from Tullow this morning, but not much to add here either.

Production guidance is down again but the problems at Jubilee have been well telegraphed and should not be a surprise. Better news is that TEN remains on schedule and under budget and will produce first oil in three to six weeks time as forecast. Those problems at Jubilee appear to have been at least sorted and production stabilised at 90/- b/d.

Rather tongue-in-cheek, I suspect, it says that the decision to go with two separate pipelines brings "clarity" to both projects and that they will have a new exploration well programme in Kenya in the fourth quarter.

TLW was a new addition the the bucket list in January and is up 63% since then, which ranks it in fifth place, where it will very much remain.

Independent Oil & Gas

News today that Independent is to commence drilling on the much-talked about Skipper well in July. Primarily an appraisal well to get the oil samples, there is an element of exploration as they take a quick look a bit deeper down while they are there.

Success here would lead to an Final Development Plan which would convert management estimates of 34.1 million barrels of contingent resources on a 25% recovery rate into 2P reserves.

And finally…

Another magnificent innings by Jason Roy last night saw England chase down 300-odd in 42 overs rarely breaking a sweat, which shows just how far they have come.

Tonight's match in the Euros is Poland v. Portugal which looks tough to call; bars all over England will be heaving with vodka-swilling or port-drinking natives…

And some very learned acquaintances of mine have had a most interesting wager with regard to the next England manager.

Ian Wright has been talking a lot of sense from the sofa and it's only a matter of time before the FA swallow their pride and go with someone like him or Alan Shearer, who was laughed out of court the last time he applied.

The 100-1 about Wright will surely come in as these wise prophets are taken seriously…

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.