Malcolm Graham-Wood
Independent Analyst
A decent up day yesterday as the long mooted meeting actually got some traction. Apparently at least 15 Opec and non-Opec countries will meet in Doha on April 17th. The market is now getting revved up about the possibilities of 70% of world oil production freezing at January levels. By any stretch of the imagination this is a bit too optimistic but dreamers will always be dreamers. We dont know whether Iran will be there or if Kuwait will ease back its policy but for the time being the market wants to believe. Inventory numbers last night were not as bad as expected but still a build of 1.3m barrels so stocks remain at highs. Finally the Fed appeared less hawkish about rates, slipping in just the two hikes this year instead of the planned four.
The UK budget yesterday was kind to the sector for once and if you pay tax in the North Sea the bill will go down. Unfortunately not that many do, but the tax break on decommissioning was helpful as was the £20m for seismic funding. Overall it was helpful and things like the UK Guarantee scheme can only help.
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