WTI $56.55 +$1.41, Brent $62.72 +$1.36, Diff -$6.17 -5c, NG $3.10 +4c

With a decent rally on Friday the falls on the week were almost negated, WTI was down 19c and Brent 79c by Friday’s close which could have been worse. After all it was the IEA vs Opec reports week, I know who I would hire to write a life saving piece of work and the inventory stats were indifferent. The rig count on Friday showed an overall rise of 8 units to 915 but in oil it was no change at 738 rigs.

Venezuela and PDVSA defaulted on their bonds on Friday, there is only so much the Russkis can do to hold the country together. Only 10 days to go now until the Opec and Non-Opec meetings and as usual speculation is rife as to what might happen. The Sunday Telegraph has gone with the line that the aforementioned Russians are spoiling for a fight although I continue to suspect that at the grown-ups level a rollover has been agreed and so expect probably an extension from 1Q maybe for the whole year. That would probably the best expectation but should do the trick as long as adherence remains strong, as they say.