Malcolm Graham-Wood
Independent Analyst
To be honest there is not much to mention about the oil price after last week. Losing over a buck a barrel on Friday meant that prices were almost exactly unchanged on the week which is probably a fair reflection of what happened. What did we learn? Well, there is a desire, from a number of sources to secure an agreement between Opec and non-Opec producers to get the price up with some coordinated action, no surprise there then. There is also precious little that can be done about it for the foreseeable future, indeed getting a freeze on production, whilst being very laudable ‘aint going to change the market. The bottom line is that there is still a glut which will be made worse next month when refiners do their usual maintenance ahead of the driving season and cut back purchases in the market. Add to that continuing misery on the world economic front and you can see that it will take a bit more than a bit of shuttle diplomacy by the Venezuelans to fix the problem. Further out there is shaping up a storm of considerable proportions on the supply side but at the moment no one is building an Arc…
Two other things, the rig count fell again on Friday, overall it was down 27 at 514, in oil it was down 26 at 413. And worth a quick visit to Houston tomorrow as the Saudi Oil Minister is in town to make a speech I hear…
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