Poor inventory stats didn't hit the oil price

Although company news is at a bit of a premium at the moment there is much going on with regard to the oil price, last week WTI declined by $2.37 and Brent $2.45 although it didnt feel that bad as the damage was done at the beginning of the week. Indeed the poor inventory stats didnt hit the oil price as much as maybe they should have. On Friday the rig count came in at -8 to 787 overall and down by 10 oil rigs to 595, the eighth straight down week and -63% y/y.

Today the Chinese GDP number was what we were all meant to be watching and it was relatively ok, just beating the 6.8% whisper coming in at 6.9%. Its not my manor but I am hearing a few slightly better things not the least a continued rise in new car sales. Whilst we are talking China it seems that Xi is in London this week and the red carpet is being rolled out in no uncertain style. Now, when that happens the recipient of such grandeur usually finds it appropriate to throw a few fish so watch out for gratuitous orders etc. My spies tell me (as does Marcus Ashworth I note) that the head of CNPC is in the delegation and that one of the said fishes may be further collaboration with BP in Iraq and maybe elsewhere too.

And the FT front pages a hatchet job on the North Sea,ending up quoting an executive of a ‘large oil company’ saying “lots of companies do not realise it yet, but this is the beginning of the end” when referring to smaller industry participants mistakenly thinking that the North Sea can fully recover from this oil price rout. Correct me if I am wrong but small companies usually move faster and with more agility than the larger ones and it is they who have managed to cut costs a lot quicker into the bargain. Maybe this executive has short trousers and hasn’t been through a ‘commodity cycle’ before…