The Officials: The US must be BRICcing it!
It rose, then it fell much further. By lunchtime Brent had hit the mid $76 level but fell towards the low $74 through the afternoon. It settled here and closed at $74.52/bbl. Brent front spreads had strengthened with the spike in flat price, peaking at 46c, but came off in parallel too, down to 38c.
The window was silent – no bids nor offers to be seen. And the North Sea may become quieter still; Harbour Energy wants to end its operations in area. Just another party jumping ship before high taxes take effect. Laffer curve in action (for the economics nerds). Serica Energy also sees the UK’s jurisdiction in the North Sea as “un-investible”. It’s not looking all that great for the UK’s oil industry.