The oil price ended the week on a high as employment figures from the US hit the spot. Brent Crude futures hit $117 a barrel on Friday, while America’s West Texas Intermediary futures approached the $98 marker. Yesterday’s non-farm payroll data showed improvement in US employment with an extra 157,000 jobs added in January – versus a decline of 196,000 in the preceding month. The key report, which also showed an unchanged unemployment rate, was broadly in-line with expectations. Investors, particularly those in the oil market, were buoyed by the economic indicator which supports the theory that America - the world’s largest oil consumer – is making a slow but steady recovery. This comes at the end of the same week that it emerged that US GDP had shrunk in the fourth quarter, and the Federal Reserve said it would continue its stimulation measures until it saw a substantial improvement. In the markets the main feature among the oil stocks was Shell, which revealed fourth quarter figures that missed expectations. This comes as the group’s gas producing assets took overtook oil volumes. The super major also outlined its capital investment plans for the year ahead. Shell is planning to spend US$4bn assessing new opportunities this year with a focus on Nigeria, Kazakhstan, Iraq, the Arctic and heavy oil. This comes as part of the group’s broader exploration and development plans, which comprise net capital investments of US$33bn this year. While US$12bn is assigned to the group’s mature businesses, Shell plans to invest US$18bn in its ‘growth priorities’. These priorities breakdown into three categories: integrated gas, deep water exploration and what it terms ‘resource plays’ – which generally comprise tight gas and liquids-rich shales. Shell says there will be a step up in exploration drilling activity, with over 40 high-potential wells planned across 18 conventional basins and 10 key resource plays.

Source