What’s going on? BHP (the world’s most valuable mining company) is close to selling its oil and gas business. What does this mean? While BHP’s main business is extracting raw copper and iron ore, oil and gas business also represented 9% of its total revenue last year. However, that activity is still classified as “non-core”….
Tag: Oil
Ep 151: The return of Saudi Aramco and the oil industry
What’s going on? After a tough time, oil producer performance is rising again. The world’s largest, Saudi Aramco, is the latest to report much-improved profit. What does this mean? As major economies reopen, commodity prices have surged: oil is up more than 30% so far in 2021, which is much more optimistic than the deep…
Ep 143: Oil price reaches its 1-year peak
What’s going on? Brent oil price has reach $71/barrel – the highest level since May 2019 on the expectation of increasing demand when the global economy reopens; along with the decreasing supply. What does that mean? The supply cut is expected in the near future as: OPEC and Russia have reached the consensus to continue cutting…
Ep 133: Shell’s worse-than-expected Q4 performance
What’s going on? Shell’s Q4 earning missed analysts’ expectations with an 87% drop in profit But its dividend is upped. What does that mean? 2020 was hard for oil companies, with ongoing travel restrictions. Shell’s feeling surprisingly optimistic about the scenario of economic recovery by the 2nd half of 2021 with the vaccine. Shell reckons…
Ep 121: Global Oil Demand Forecast Cut
What’s going on? The International Energy Agency (IEA) cut its forecast for global oil demand, despite the recently announced vaccine. What does this mean? Oil’s price has been rising since Pfizer and BioNTech reported the success of their coronavirus vaccine trial, renewing hopes for an uptick in demand. But the IEA doesn’t expect demand to rise significantly till late…
Ep 114: Spoiled
What’s Going On Here? Chevron and Exxon – the most valuable Western oil producer – reported first-quarter updates that reveal the mess the oil industry’s just stepped in. What Does This Mean? Exxon unexpectedly announced its first quarterly loss in 32 years, while Chevron announced a better-than-expected first quarter. The oil markets have been weighed down lately,…
Ep 111: All Scrude Up
What’s Going On Here? The price of a barrel of oil crashed to its lowest price since 1986 – and the reason might well be found in the “futures” market. What Does This Mean? The 34-year low is partly down to: the same falling oil demand that’s caused issues for weeks: falling demand that…
Ep 105: Cautious Optimism
What’s Going On Here? The price of oil had one of its best two-day climbs on record, as Russia and Saudi Arabia shuffled closer to elbow-shaking on an end to their price war. What Does This Mean? Both Russia and Saudi Arabia have been producing more oil than anyone needed, and with supply massively outweighing…
Ep 104: Feeling Faint
What’s Going On Here? The oil price suffered its biggest drop in almost 30 years, after Saudi Arabia unexpectedly flooded the market! What Does This Mean? Oil is caught in the middle of two at-odds countries right now. On one side, there’s Saudi Arabia – the biggest producer of the OPEC. And on the other, Russia…
Journal Report 2: Oil Might Be Dead But Chips Are Just Getting Started
Summary Broadcom currently trades at a massive discount relative to its median 5yr price to free cash flow, granting investors an attractive entry point. “Chip stocks”, such as Broadcom can sometimes offer comparative yields to oil and gas stocks, while not facing mediocre returns at best and extinction at worst. The best chip stocks generate…
with HT 