Chevron Corp. (NYSE:CVX) lowered its earning guidance for the third quarter Tuesday, citing the collapsing U.S. dollar and the deepwater oil moratorium imposed by the Obama administration which drove up the costs for the period. Lower crude prices were also cited as a reason for the lowered guidance.
Together it will slash earnings for the quarter by close to $400 million, said the energy giant.
This isn't a surprise to most people, as Wall Street had already lowered their profit estimates to $2.27, down from the second-quarter earnings of $2.70 a share.
Chevron noted the declining value of the U.S. dollar will hit their International Upstream business the hardest.
U.S. upstream earnings were the most negatively affected by the oil moratorium, resulting in a drop of 16,000 barrels of day in production on average in the country, while costs rose.
Chevron has been lowering their investment in small-margin businesses in order to target exploration to find new gas and oil fields.
The company closed Tuesday at $83.84, gaining $0.13, or 0.16 percent.
Showing posts with label Oil Trading US Dollars. Show all posts
Showing posts with label Oil Trading US Dollars. Show all posts
Wednesday, October 13, 2010
Thursday, October 7, 2010
Oil Prices Today Drop After Hitting 5-month High
After hitting a 5-month high above $84 a barrel, oil prices today dropped as investors looked at supply and demand rather than only the collapsing U.S. dollar.
That's not to say the weakening U.S. dollar isn't a factor, just that it's not the sole factor in oil price movements. No matter how weak the dollar is, consumers still must buy gas and oil in order to push prices up to high levels.
This is how it's going to go for some time into the future, not just for oil prices, but for commodity prices in general. Those moved by supply and demand, coupled with the drop in value of the U.S. dollar will do very well for some time.
After reaching $84.43 today, crude oil pulled back for November delivery to below $83. As of 1431 GMT, it stood at $82.83.
The push and pull of supply and demand versus the falling U.S. dollar will have oil and commodities performing in this manner going forward, as the market looks for a balance between the two.
In the short term at least, it is expected that oil prices will pull back more.
That's not to say the weakening U.S. dollar isn't a factor, just that it's not the sole factor in oil price movements. No matter how weak the dollar is, consumers still must buy gas and oil in order to push prices up to high levels.
This is how it's going to go for some time into the future, not just for oil prices, but for commodity prices in general. Those moved by supply and demand, coupled with the drop in value of the U.S. dollar will do very well for some time.
After reaching $84.43 today, crude oil pulled back for November delivery to below $83. As of 1431 GMT, it stood at $82.83.
The push and pull of supply and demand versus the falling U.S. dollar will have oil and commodities performing in this manner going forward, as the market looks for a balance between the two.
In the short term at least, it is expected that oil prices will pull back more.
Monday, September 27, 2010
JPMorgan (NYSE:JPM) Sees $90 Oil by End of 2010
JPMorgan (NYSE:JPM) said the price of oil by the end of 2010 should reach close to $90 a barrel.
Data perceived as positive for the economy is partly driving the outlook, but probably the weak U.S. dollar is the main catalyst, as the commitment by the Federal Reserve to interfere in the economy if it remains weak a a major driver as well, which is part of the loss of value of the dollar.
One possible thing that could derail the higher price is if consumers continue to hold back on traveling and spending, which could cause demand to go down and inventories to go up, which could push oil prices down to lower levels than expected.
For Friday, in afternoon trade West Texas Intermediate crude for November contracts was up to $76.35 a barrel, gaining $1.17 on the New York Mercantile Exchange.
Data perceived as positive for the economy is partly driving the outlook, but probably the weak U.S. dollar is the main catalyst, as the commitment by the Federal Reserve to interfere in the economy if it remains weak a a major driver as well, which is part of the loss of value of the dollar.
One possible thing that could derail the higher price is if consumers continue to hold back on traveling and spending, which could cause demand to go down and inventories to go up, which could push oil prices down to lower levels than expected.
For Friday, in afternoon trade West Texas Intermediate crude for November contracts was up to $76.35 a barrel, gaining $1.17 on the New York Mercantile Exchange.
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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