BP PLC (NYSE:BP) is poised to make changes in its highly profitable trading unit, shifting its strategy to emerging markets.
Those changes could end up resulting in the loss of jobs throughout the division, which has offices around the world. The BP trading unit is the largest oil trader in the world.
Profits have been under pressure because of the lack of volatility in the oil market, as prices have been stable over the last year, moving from a range $70 to $85 a barrel.
Consequently margins have dropped along with earnings in the division, which is a major driver of profits at the company, although it's not reported on separately.
The strategy will be to lower costs, which in the beginning will include letting people go.
The division will be under review for several weeks before a final decision is made
Emerging markets being look at to expand in include China, India and Brazil, along with some parts of West Africa.
Showing posts with label Oil Trading. Show all posts
Showing posts with label Oil Trading. Show all posts
Friday, October 8, 2010
Tuesday, August 10, 2010
BP (NYSE:BP) Relief Well Should Impact Oil Trading
The relief well that BP (NYSE:BP) has been working towards over the last few months, is only 100 feet away from reaching their target. The completion of this process will insure no more crude oil is ever released into the ocean by the Macondo well. It should also have a big impact on oil trading.
John Wright is the man who will be guiding the drill over three miles from the surface and two miles below the sea floor. The target he will be attempting to hit is less than half the size of a dartboard. If Wright misses the target, BP's engineers will pull the drill up and pour concrete into the hole, and then try it again.
Wright has helped companies for over four decades cap wells all over the world. His track record is 40 for 40, hoping to make it 41 for 41 with his completion of the Macondo well. After watching a video from BP in June, he said he is quite confident that he can do it.
"Out of forty relief wells that I've drilled, we've never missed yet. I've got high confidence we will take care of this problem as soon as we can get there," said Wright.
John Wright is the man who will be guiding the drill over three miles from the surface and two miles below the sea floor. The target he will be attempting to hit is less than half the size of a dartboard. If Wright misses the target, BP's engineers will pull the drill up and pour concrete into the hole, and then try it again.
Wright has helped companies for over four decades cap wells all over the world. His track record is 40 for 40, hoping to make it 41 for 41 with his completion of the Macondo well. After watching a video from BP in June, he said he is quite confident that he can do it.
"Out of forty relief wells that I've drilled, we've never missed yet. I've got high confidence we will take care of this problem as soon as we can get there," said Wright.
Monday, June 28, 2010
BP (NYSE:BP) UPDATE: Containment Costs, Stock Prices, and Tony Hayward
BP's (NYSE:BP) oil cleanup and containment costs continues to rise, reaching $2.65 billion according to BP on Monday. That pushes the companies expenses to over $100 million a day since the sinking of the Deepwater Horizon rig. This cost includes relief well drilling, grants to Gulf states, claims already paid out, spill response, containment efforts, as well as federal costs incurred.
After watching BP's stock plummet 6 percent, a 14 year low on Friday, today BP's shares saw an increase in premarket oil trading of 2 percent. That's a total loss in market value of over $100 billion dollars. BP was adamant in denying the fact that Tony Hayward, their chief executive was resigning. This rumor stemmed from a Russia state RIA Novositi news agency reported that a senior Russian Cabinet official said that Hayward was going to be resigning from his position at BP.
"Hayward is leaving his post, he will introduce his successor," said Sechin quoted by RIA Novosti. There is denial all around, from BP spokeswoman Carolyn Copland in London said it, "is definitely not correct." Also of London, Sheila Williams stated, " Tony Hayward remains chief executive." Mark Proegler, the U.S. BP spokesman said, "they are mistaken."
"I'm sure there has been a misunderstanding. Hayward's resignation at this time and in this place lacks logic. It would make sense that Hayward would finish his job tackling the oil spill and step down afterwards so the new CEO wouldn't have his burden on his shoulders, " said Konstantin Cherepanov oil analyst from the Swiss Investment Bank UBS.
After watching BP's stock plummet 6 percent, a 14 year low on Friday, today BP's shares saw an increase in premarket oil trading of 2 percent. That's a total loss in market value of over $100 billion dollars. BP was adamant in denying the fact that Tony Hayward, their chief executive was resigning. This rumor stemmed from a Russia state RIA Novositi news agency reported that a senior Russian Cabinet official said that Hayward was going to be resigning from his position at BP.
"Hayward is leaving his post, he will introduce his successor," said Sechin quoted by RIA Novosti. There is denial all around, from BP spokeswoman Carolyn Copland in London said it, "is definitely not correct." Also of London, Sheila Williams stated, " Tony Hayward remains chief executive." Mark Proegler, the U.S. BP spokesman said, "they are mistaken."
"I'm sure there has been a misunderstanding. Hayward's resignation at this time and in this place lacks logic. It would make sense that Hayward would finish his job tackling the oil spill and step down afterwards so the new CEO wouldn't have his burden on his shoulders, " said Konstantin Cherepanov oil analyst from the Swiss Investment Bank UBS.
Thursday, May 27, 2010
BP's (NYSE:BP) "Top Kill" Oil Spill Containment Efforts Show No Change
There's been much anticipation and hope as BP (NYSE:BP) started it's "top kill" attempt yesterday afternoon. There was a fluctuation in the trading market as well as investors nerves mirrored this fluctuation.
As of today on the live oil spill video, you cannot see a whole lot of change. Even though the containment equipment has been put into place and the oil cleanup efforts are in full force. The only visible difference seems to be rather than thick black crude oil spewing out of the two breaks in the pipe, there's now what appears to be brown mud barreling out.
BP chief executive, in a statement Wednesday evening said, "the operation is proceeding as we planned it."
Doug Suttles, BP's chief operating officer said at a new conference Wednesday night, "it's too early to know if its going to be successful." He also stated that it would be at least a day or two before any conclusive results would be known. He said that there's 7,000 barrels of thick drilling mud being forced into the well at varying rates of speed.
As of today on the live oil spill video, you cannot see a whole lot of change. Even though the containment equipment has been put into place and the oil cleanup efforts are in full force. The only visible difference seems to be rather than thick black crude oil spewing out of the two breaks in the pipe, there's now what appears to be brown mud barreling out.
BP chief executive, in a statement Wednesday evening said, "the operation is proceeding as we planned it."
Doug Suttles, BP's chief operating officer said at a new conference Wednesday night, "it's too early to know if its going to be successful." He also stated that it would be at least a day or two before any conclusive results would be known. He said that there's 7,000 barrels of thick drilling mud being forced into the well at varying rates of speed.
Tuesday, May 18, 2010
Exxon Mobil (NYSE:XOM) Oil Prices Change, How It Will Affect Your Summer Plans
Exxon Mobil, (NYSE:XOM) the nations largest oil company stock has dropped almost 2 percent. While Conoco Phillips has dropped nearly 3 percent, the oil prices continue to change. As a whole, the oil trading industry has lost a total of 20 percent in just two weeks.
With the Summer Driving season almost here, many are wondering how, with the fluctuation of oil trading, it will effect their plans. The good news comes to U.S. motorists who should see a substantial drop at the gas pump, just in time for Summer.
Earlier this month gas spiked close to $3.00 a gallon. Tom Kloza from the Oil Price Information Service has said, prices will hit $2.75 a gallon or less by next week within many areas in the U.S.
Kloza also stated that the crude oil companies are the only losers in all of this, but they will still make plenty of money at the current oil prices.
If the oil prices today stay at the current price of around $70 a barrel, Kloza said that will translate to $2.60 - $2.65 a gallon. With some areas in the U.S. getting as low as $2.50 a gallon.
With the Summer Driving season almost here, many are wondering how, with the fluctuation of oil trading, it will effect their plans. The good news comes to U.S. motorists who should see a substantial drop at the gas pump, just in time for Summer.
Earlier this month gas spiked close to $3.00 a gallon. Tom Kloza from the Oil Price Information Service has said, prices will hit $2.75 a gallon or less by next week within many areas in the U.S.
Kloza also stated that the crude oil companies are the only losers in all of this, but they will still make plenty of money at the current oil prices.
If the oil prices today stay at the current price of around $70 a barrel, Kloza said that will translate to $2.60 - $2.65 a gallon. With some areas in the U.S. getting as low as $2.50 a gallon.
Oil and Gas Investments Plunge, Buffet Cuts Over 3 Million in Conoco Phillips (NYSE:CON) Shares
Warren Buffet cuts over 3 million in Conoco Phillips (NYSE:CON) oil and gas investments. Billionaire Warren Buffet's investment choices and moves on companies are watched closely by investors.
At the end of March, Mr. Buffet held $34.18 million shares in Conoco Phillips. Three month prior, he had $37.71 million shares invested in the company. This information comes from Berkshire Hathaway Inc.'s U.S. equity portfolio filed with the U.S. Securities and Exchange commission.
Mr. Buffet's U.S. equity portfolio at the close of the March 2010 quarter, was down from $57.93 billion to $50.93 billion. His oil trading investments weren't the only companies he reduced.
At the end of the December 2009 quarter, he held $138.27 million dollars in Kraft Foods Inc., this has been reduced to $106.73 shares. Also, Procter and Gamble Co. was reduced from $87.5 million to $79.09 million. As well as Costco Wholesale Corp. which went from $5.25 million shares to $4.23 million in shares.
At the end of March, Mr. Buffet held $34.18 million shares in Conoco Phillips. Three month prior, he had $37.71 million shares invested in the company. This information comes from Berkshire Hathaway Inc.'s U.S. equity portfolio filed with the U.S. Securities and Exchange commission.
Mr. Buffet's U.S. equity portfolio at the close of the March 2010 quarter, was down from $57.93 billion to $50.93 billion. His oil trading investments weren't the only companies he reduced.
At the end of the December 2009 quarter, he held $138.27 million dollars in Kraft Foods Inc., this has been reduced to $106.73 shares. Also, Procter and Gamble Co. was reduced from $87.5 million to $79.09 million. As well as Costco Wholesale Corp. which went from $5.25 million shares to $4.23 million in shares.
Thursday, May 13, 2010
Oil Futures Down on Inventory Increase
Oil inventories continue to grow in the United States, and oil futures are falling in response to the increased supply, dropping to $74.40 a barrel a plunge of 1.7 percent on the New York Mercantile Exchange for June. July declined to $78.99 a barrel as well.
The spread, as you can see, is wider than normal, and traders are dropping the June contract in favor of the July futures contract.
That comes from the possibility of having to find storage when the burgeoning oil supply has filled up much of the available space.
Oil levels are now 29 percent higher than last year at the same time, and is the highest since December 2009.
The spread, as you can see, is wider than normal, and traders are dropping the June contract in favor of the July futures contract.
That comes from the possibility of having to find storage when the burgeoning oil supply has filled up much of the available space.
Oil levels are now 29 percent higher than last year at the same time, and is the highest since December 2009.
Monday, October 5, 2009
How Will Oil Be Traded? Maybe Not in U.S. Dollars
A growing number of nations are negotiating to drop the use of the U.S. dollar as the currency used to trade oil, which originally would be replaced by a basketfull of currencies, and over the long haul an as yet undetermined currency.
Inluded in the countries currently negotiating are France, the Arab states, Japan, China, Russia, and Brazil. India may eventually get on board as well, making it a considerable force in the future. Goals are to make the change from trading oil in U.S. dollars to a basket of currencies by 2018.
Nations understand the extraordinary and misguided practices and policies of the U.S. government and the way it has spent money to bailout the numerous industries they refuse to allow to fail, and the amazing size of the debt incurred to do it.
All this means the U.S. dollar will continue to fall in value as the printing of money continues from the Federal Reserve.
America will find itself struggling to maintain its economic dominance as a result, and there's literally nothing that can be done about it unless the horrid economic policies are abandoned and the political will is there to make it happen.
It's doubtful that will happen any time soon, and so we'll probably have to go through a lot more pain before America and its politicians abandon the economic path they're traveling and return to financial sanity.
Inluded in the countries currently negotiating are France, the Arab states, Japan, China, Russia, and Brazil. India may eventually get on board as well, making it a considerable force in the future. Goals are to make the change from trading oil in U.S. dollars to a basket of currencies by 2018.
Nations understand the extraordinary and misguided practices and policies of the U.S. government and the way it has spent money to bailout the numerous industries they refuse to allow to fail, and the amazing size of the debt incurred to do it.
All this means the U.S. dollar will continue to fall in value as the printing of money continues from the Federal Reserve.
America will find itself struggling to maintain its economic dominance as a result, and there's literally nothing that can be done about it unless the horrid economic policies are abandoned and the political will is there to make it happen.
It's doubtful that will happen any time soon, and so we'll probably have to go through a lot more pain before America and its politicians abandon the economic path they're traveling and return to financial sanity.
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