Oil futures trading prices saw a slight increase, taking it right above $73 a barrel. Crude oil has been on the decline, losing almost 11.5 percent from $82 a barrel since the beginning of the month. It's become clear that the U.S. economy is slowing, suggesting the oil and gas demand will remain sluggish.
The rebound in the prices of crude was a result of natural gas prices falling. Some analysts said that there is a vast majority of traders who thought natural gas wouldn't go below $4 per cubic foot, and that crude oil would fall below $70 a barrel. As the gas started dropping below that level, traders started buying crude to avoid losses and cover their bets.
"Given the future prospects for economic recovery, the oil market is considered to have fallen to much, to fast. We are seeing some uptake in oil pricing, and the low 70's seem to be the near term bottom," said Victor Shum, energy analyst for Pervin & Gertz.
Showing posts with label Oil Stock Prices. Show all posts
Showing posts with label Oil Stock Prices. Show all posts
Thursday, August 26, 2010
Monday, August 2, 2010
Oil Stock Prices and Crude Oil Futures Soar: BP (NYSE:BP)
Energy stock prices have reached their highest level in two months and BP (NYSE:BP) shares soar. Crude oil futures have jumped to over $80 a barrel. After months of waiting, wondering, and anticipating a turn around in the stock market, maybe we are now headed in that direction.
The biggest increase was seen in the Philadelphia Oil Service Index gaining 2.4 percent to 186. The NYSE Arca Natural Gas Index increased by 1.8 percent to 525. While the NYSE Arca Oil Index broke through the four digit level rising 2.2 percent to 1,002. The Dow Jones Industrial Average added 135 points.
BP shares inclined 2 percent to $39.29. Chevron and Exxon also saw gains. Chevron rose 2.9 percent to $77.84 and Exxon increased by 2.66 percent reaching $61.26.
The biggest increase was seen in the Philadelphia Oil Service Index gaining 2.4 percent to 186. The NYSE Arca Natural Gas Index increased by 1.8 percent to 525. While the NYSE Arca Oil Index broke through the four digit level rising 2.2 percent to 1,002. The Dow Jones Industrial Average added 135 points.
BP shares inclined 2 percent to $39.29. Chevron and Exxon also saw gains. Chevron rose 2.9 percent to $77.84 and Exxon increased by 2.66 percent reaching $61.26.
Monday, June 14, 2010
Anadarko's (NYSE:APC) Fuel Spill Containment Responsibilities
While so many people are focused on BP, Halliburton, and Transocean, many are forgetting about Anadarko's (NYSE:APC) fuel spill containment responsibilities.
Anadarko, who owns a 25 percent stake of the Macondo discovery, the site of the explosion and oil leak that followed, has lost 33 percent or 25 billion of market capitalization since April 20th. BP who is working in the field unlike Anadarko, has lost $69 billion or 37 percent. If Anadarko is required to foot their 25 percent of the bill, that would equal to $98 billion. While BP's share at 67 percent of the discovery puts their required cost at $106 billion.
Obviously, this is no where near what oil stock prices are reflecting, which is much less. BofA Merrill Lynch Global Research estimates the net value of present claims could run close to 11 billion total. What's completely uncertain is what the potential punitive damages will end up costing these oil companies. By looking at BP's share prices, it's expected to be extremely high.
The question is, will Anadarko also be held responsible and required to pay anything past the initial oil cleanup costs. Anadarko has stated their interest in Macondo did not come until well after drilling began. They're also maintaining they had no involvement in the operating procedures or in designing the well.
The American Association of Professional Landmen's Form 810 clearly states, all parties to the agreement usually bear liability for damages based on their stake except "when liability results from the gross negligence or willful misconduct" of one of the involved parties. So if BP ends up being found grossly negligent, it would open the door for Anadarko being able to contest paying any punitive damages.
Anadarko, who owns a 25 percent stake of the Macondo discovery, the site of the explosion and oil leak that followed, has lost 33 percent or 25 billion of market capitalization since April 20th. BP who is working in the field unlike Anadarko, has lost $69 billion or 37 percent. If Anadarko is required to foot their 25 percent of the bill, that would equal to $98 billion. While BP's share at 67 percent of the discovery puts their required cost at $106 billion.
Obviously, this is no where near what oil stock prices are reflecting, which is much less. BofA Merrill Lynch Global Research estimates the net value of present claims could run close to 11 billion total. What's completely uncertain is what the potential punitive damages will end up costing these oil companies. By looking at BP's share prices, it's expected to be extremely high.
The question is, will Anadarko also be held responsible and required to pay anything past the initial oil cleanup costs. Anadarko has stated their interest in Macondo did not come until well after drilling began. They're also maintaining they had no involvement in the operating procedures or in designing the well.
The American Association of Professional Landmen's Form 810 clearly states, all parties to the agreement usually bear liability for damages based on their stake except "when liability results from the gross negligence or willful misconduct" of one of the involved parties. So if BP ends up being found grossly negligent, it would open the door for Anadarko being able to contest paying any punitive damages.
Thursday, June 10, 2010
Crude Oil Futures Trading: Anadarko (NYSE:APC), Transocean (NYSE:RIG), Halliburton (NYSE:HAL), Cameron (NYSE:CAM), BP (NYSE:BP)
After seeing oil shares drop so sharply yesterday, todays crude oil futures trading prices have seen an increase in not only BP (NYSE:BP), but also Anadarko (NYSE:APC),
Transocean (NYSE:RIG), Halliburton (NYSE:HAL), and Cameron (NYSE:CAM). This extreme drop, which was BP's lowest since at least 1972, was said to be caused by the fear of the impending financial doom of the full scale of BP's fuel spill and the possibility of BP filing bankruptcy.
Today, investors were buying as quickly as they were selling yesterday. This gave BP a boost as well as oil stock prices across the board. Raymond James analyst Alex Morris said, "there was a lot of fear in the market yesterday, people maybe have slept on it and are getting a little less scared of the stock. People might just be thinking that yesterdays sell off was overblown and premature."
BP climbed almost 8 percent to $31.50, reaching the high of the day at $33.04.
Anadarko Petroleum rose 8.6 percent to $37.84, this was also after a huge loss on Wednesday of 19 percent. Anadarko is a minority share holder in the Macondo well.
Transocean was up to 4.5 percent to $44.52, there loss yesterday was 8.1 percent.
Halliburton dropped only 2 percent on Wednesday, but today saw a 5 percent rise to $23.72. Cameron was up 4.4 percent to $35.62.
Transocean (NYSE:RIG), Halliburton (NYSE:HAL), and Cameron (NYSE:CAM). This extreme drop, which was BP's lowest since at least 1972, was said to be caused by the fear of the impending financial doom of the full scale of BP's fuel spill and the possibility of BP filing bankruptcy.
Today, investors were buying as quickly as they were selling yesterday. This gave BP a boost as well as oil stock prices across the board. Raymond James analyst Alex Morris said, "there was a lot of fear in the market yesterday, people maybe have slept on it and are getting a little less scared of the stock. People might just be thinking that yesterdays sell off was overblown and premature."
BP climbed almost 8 percent to $31.50, reaching the high of the day at $33.04.
Anadarko Petroleum rose 8.6 percent to $37.84, this was also after a huge loss on Wednesday of 19 percent. Anadarko is a minority share holder in the Macondo well.
Transocean was up to 4.5 percent to $44.52, there loss yesterday was 8.1 percent.
Halliburton dropped only 2 percent on Wednesday, but today saw a 5 percent rise to $23.72. Cameron was up 4.4 percent to $35.62.
Wednesday, June 2, 2010
Halliburton's (NYSE:HAL) Stock Rises Today
Since April 20th, it's been a see-saw effect for Halliburton's (NYSE:HAL) shares. After seeing them plummet 14.8 percent at the close of the New York Stock Exchange yesterday at 4:00 PM, it left many investors doubting any turn around would happen.
Although this wasn't necessarily a surprise, this was the foreseen doom that would effect all oil stock prices if BP was unsuccessful at stopping the oil with their "top kill" fuel containment effort. Halliburton's role was the cementing of the well, among other things to do with the development of the blown out well.
On Wednesday, Halliburton's stock rises, increasing more than 12 percent. It's believed its due mainly to the story from the Dow Jones which reported that Halliburton believes that it will be fully indemnified from all expenses and claims resulting from the April 20th oil spill. Executives said they are confident that they will be exempt from any claims as a result of the spill. They say they have $600 million in general liability insurance.
This may be wishful thinking on Halliburton's part. Transocean is also trying to cap their liability. The Obama administration is challenging Transocean's attempts.
Although this wasn't necessarily a surprise, this was the foreseen doom that would effect all oil stock prices if BP was unsuccessful at stopping the oil with their "top kill" fuel containment effort. Halliburton's role was the cementing of the well, among other things to do with the development of the blown out well.
On Wednesday, Halliburton's stock rises, increasing more than 12 percent. It's believed its due mainly to the story from the Dow Jones which reported that Halliburton believes that it will be fully indemnified from all expenses and claims resulting from the April 20th oil spill. Executives said they are confident that they will be exempt from any claims as a result of the spill. They say they have $600 million in general liability insurance.
This may be wishful thinking on Halliburton's part. Transocean is also trying to cap their liability. The Obama administration is challenging Transocean's attempts.
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