Citing oil demand and resultant higher prices, JPMorgan (NYSE:JPM) said they're maintaining their "Overweight" rating on BP Plc (NYSE:BP).
With the demand for oil surprising many, the higher prices from the demand is good news for BP and others in the industry.
Barclays (NYSE:BCS) also see oil prices rising, with oil companies benefiting from it, and those invested in them.
The IEA Monthly Oil Market report revealed the IEA has upwardly revised their oil demand numbers in the short term by about 110 thousand b/d to 1.73 m b/d.
Shares of BP fell slightly to $41.02, dropping $0.39, or 0.94 percent.
Showing posts with label Oil Prices 2010. Show all posts
Showing posts with label Oil Prices 2010. Show all posts
Friday, October 15, 2010
Friday, June 11, 2010
Peter Schiff on Oil Prices
In a recent interview, Peter Schiff said he believes the only reason oil prices haven't skyrocketed is concerns by people around the world over the potential fallout from the sovereign debt crisis in Europe, which could spread far beyond the continent to infect the world.
When you take the time the year it is, the usual high-priced gas and oil summer season, the moratorium by Obama in the Gulf, and the Gulf disaster itself, and you have the elements of extraordinary oil and gasoline prices, which haven't emerged.
Schiff stated, “Oil prices Should be going through the roof right now. The only reason they’re not is because of the broad-based sell-off around the world in equities, commodities, and other currencies due to the fear of contagion in Europe. This is trumping the very very bullish news for oil. But once we hit a bottom, I think we’re gonna see a huge increase in the price of oil.”
When you take the time the year it is, the usual high-priced gas and oil summer season, the moratorium by Obama in the Gulf, and the Gulf disaster itself, and you have the elements of extraordinary oil and gasoline prices, which haven't emerged.
Schiff stated, “Oil prices Should be going through the roof right now. The only reason they’re not is because of the broad-based sell-off around the world in equities, commodities, and other currencies due to the fear of contagion in Europe. This is trumping the very very bullish news for oil. But once we hit a bottom, I think we’re gonna see a huge increase in the price of oil.”
Tuesday, June 1, 2010
Goldman Sachs (NYSE:GS) Sees Copper, Crude Oil Rising
Goldman Sachs (NYSE:GS) sees copper and crude oil rising by the end of 2010, surprisingly based on what they're saying will be economic growth.
They say copper could increase to as high as $7,755 a metric ton, while crude oil will probably hit $93 a barrel.
“When you look at the underlying fundamentals, whether it’s macroeconomic data or commodity-specific data, the fundamental picture is still very strong,” said Jeffrey Currie. "With copper, the fundamentals are outright rock solid.”
This is an interesting and contrarian viewpoint for the economic conditions we face, and calling the macroeconomic data fundamentals very strong is puzzling to say the least, especially in light of the emerging slowdown in China, which has caught a lot of people off-guard.
One thing to keep in mind with China is they will probably only slow down a little in comparison to past performance, but even a one percent decline in China is quite a huge hit for raw materials companies and others looking to import to the country.
There are too many variables out there to justify this type of optimism, and while there may be some growth, the manufacturing sector is already in retreat, and commodity prices falling along with demand.
They say copper could increase to as high as $7,755 a metric ton, while crude oil will probably hit $93 a barrel.
“When you look at the underlying fundamentals, whether it’s macroeconomic data or commodity-specific data, the fundamental picture is still very strong,” said Jeffrey Currie. "With copper, the fundamentals are outright rock solid.”
This is an interesting and contrarian viewpoint for the economic conditions we face, and calling the macroeconomic data fundamentals very strong is puzzling to say the least, especially in light of the emerging slowdown in China, which has caught a lot of people off-guard.
One thing to keep in mind with China is they will probably only slow down a little in comparison to past performance, but even a one percent decline in China is quite a huge hit for raw materials companies and others looking to import to the country.
There are too many variables out there to justify this type of optimism, and while there may be some growth, the manufacturing sector is already in retreat, and commodity prices falling along with demand.
Tuesday, May 25, 2010
Exxon (NYSE:XOM), Chevron (NYSE:CVX) Down on Lower Oil Prices
The price of oil futures plunged below the $69 a barrel mark to close the day at $68.75 a barrel, dropping as low as $67.15 a barrel. Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) closed down as well, moving in unison with oil prices today.
Exxon Mobil dropped 48 cents, or 0.8 percent, to $59.71, while Chevron was down 87 cents, or 1.2 percent, to $72.57.
Volume was high for both companies, with 22,308,218 Chevron share changing hands, in contrast to the 3-month average of 10,814,000. Exxon Mobil surged to 50,536,767 shares being exchanged, against the 3-month average of 28,592,600.
The Dow Jones Industrial Average declined by 22.82 points, to finish at 10043.75, a 0.23 percent drop.
Exxon Mobil dropped 48 cents, or 0.8 percent, to $59.71, while Chevron was down 87 cents, or 1.2 percent, to $72.57.
Volume was high for both companies, with 22,308,218 Chevron share changing hands, in contrast to the 3-month average of 10,814,000. Exxon Mobil surged to 50,536,767 shares being exchanged, against the 3-month average of 28,592,600.
The Dow Jones Industrial Average declined by 22.82 points, to finish at 10043.75, a 0.23 percent drop.
Wednesday, May 5, 2010
Chesapeake Energy (NYSE:CHK) Oil, Gas Liquid Shift
Chesapeake Energy (NYSE:CHK) beat analysts' expectations for the first quarter, with earnings reaching $590 million, or 92 cents a share. Last year in the same quarter lost $5.7 billion, or $9.63 a share.
Revenue for the quarter increased to $2.8 billion, up from $2 billion last year.
Going forward, Chesapeake said they're going to shift capital expenditures to natural gas liquids and oil, and a glut of natural gas on the market has driven prices down.
Analysts had been looking for 70 cents a share after excluding one-time items, while Chesapeake's adjusted profit far exceeded that, ending the quarter at 82 cents a share.
Revenue for the quarter increased to $2.8 billion, up from $2 billion last year.
Going forward, Chesapeake said they're going to shift capital expenditures to natural gas liquids and oil, and a glut of natural gas on the market has driven prices down.
Analysts had been looking for 70 cents a share after excluding one-time items, while Chesapeake's adjusted profit far exceeded that, ending the quarter at 82 cents a share.
Friday, April 16, 2010
Oil Drops on Goldman Sachs (NYSE:GS) Fraud Charges
Oil falls on news of fraud charges against Goldman Sachs
It seems almost everything responded negatively to the news Goldman Sachs (NYSE:GS) was being charged with fraud by the Securities and Exchange Commission, including crude oil, which dropped by $2.70 to $82.81 a barrel on the NYMEX.
Equities and other commodities fell as well, with gold prices getting hit hard, dropping by over $24 in mid-day trading.
In what appears to be an over-response to the relatively benign situation, it tells me traders know the market is flying way too high, and with commodity prices, for the most part, at very high levels as well, anything that spooks traders and investors seems ready to put heavy downward pressure on the markets.
Investors are getting leery of the optimism being portrayed by the media concerning the markets, and they know much of it is hype and not based on fundamentals, and the market is poised for a heavy correction, as evidenced by the response to something that shouldn't be taken as that big of a deal.
It seems almost everything responded negatively to the news Goldman Sachs (NYSE:GS) was being charged with fraud by the Securities and Exchange Commission, including crude oil, which dropped by $2.70 to $82.81 a barrel on the NYMEX.
Equities and other commodities fell as well, with gold prices getting hit hard, dropping by over $24 in mid-day trading.
In what appears to be an over-response to the relatively benign situation, it tells me traders know the market is flying way too high, and with commodity prices, for the most part, at very high levels as well, anything that spooks traders and investors seems ready to put heavy downward pressure on the markets.
Investors are getting leery of the optimism being portrayed by the media concerning the markets, and they know much of it is hype and not based on fundamentals, and the market is poised for a heavy correction, as evidenced by the response to something that shouldn't be taken as that big of a deal.
Thursday, April 15, 2010
OPEC May Increase Production if Oil Prices Go Over $100 a Barrel
OPEC May Increase Oil Production if Prices Go Over $100 a Barrel
OPEC will change its production levels if the price of oil goes above $100 a barrel, said Kuwaiti Oil Minister Sheikh Ahmad Abdullah al-Sabah today.
Even so, Sheikh Ahmad that considerations would have to be taken into account concerning supply and demand when making decisions.
For now, oil prices at about $85 a barrel are considered a good price by OPEC, and that isn't anticipated to change much, although some think it'll go much higher as the summer period comes.
I don't think so though, as the so-called recovery isn't really one, as data continues to come out showing increased loss of jobs and foreclosures.
That will keep oil demand from rising, along with oil prices.
OPEC will change its production levels if the price of oil goes above $100 a barrel, said Kuwaiti Oil Minister Sheikh Ahmad Abdullah al-Sabah today.
Even so, Sheikh Ahmad that considerations would have to be taken into account concerning supply and demand when making decisions.
For now, oil prices at about $85 a barrel are considered a good price by OPEC, and that isn't anticipated to change much, although some think it'll go much higher as the summer period comes.
I don't think so though, as the so-called recovery isn't really one, as data continues to come out showing increased loss of jobs and foreclosures.
That will keep oil demand from rising, along with oil prices.
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