"Concerns over the strength of the global recovery, combined with a stronger dollar, have placed downward pressure on oil," according to analysts at Action Economics. Crude Oil Futures continue to plummet, today falling below $72 a barrel. The cause, mounting worry and concern about the global recovery pace.
In morning trading, The Dow Jones Industrial Average dropped over 100 points. While broader Indexes also saw a decline of over 1 percent. Investors are ditching oil stocks and going back into the safety of the Treasury bond market. The looming concern is that because of the slow recovery, which could push the economy back into a recession.
The Dow Jones slid 103.83 or 1 percent to 10,074.06. While The Standard and Poor 500 Index also declined to 11.60 or 1.1. percent to 1,055.76. The Nasdaq Composite Index dropped 25.52 or 1.2 percent bringing it to 1,786.79. For every one stock that rose on the New York Stock exchange, 10 fell.
Phil Flynn, PFG Best analyst said, "Just when it seems oil is going to rally on strong economic optimism, it gets crushed with the realty of gluttonous supply. When it gets ready to fall apart, like in the emergence of the latest chapter in the economic crisis, some central bank supports it with a flood of printed money."
Showing posts with label Oil Stocks. Show all posts
Showing posts with label Oil Stocks. Show all posts
Tuesday, August 24, 2010
Monday, June 7, 2010
BP (NYSE:BP) Update: Containment Berms and Oil Skimming
Although there is optimism over BP'S (NYSE:BP) containment cap that was successful placed on Thursday, the harmful effects of the estimated 23 million to 50 million gallons that have already polluted the ocean and now our shorelines despite placing containment berms, cannot be denied. Not to mention in an already bad economy oil stocks and investments have plummeted. These are just a couple of the constant reminders of just the beginning effects of the oil spill tragedy.
Kelcey Forrestier, a biology graduate visiting Florida's Okaloosa area said, "oil doesn't just go away, oil doesn't disappear. It has to go somewhere and its going to come to the Gulf beaches." He said its obvious that this oil damage will go on for years to come.
The oil is also making its appearance in Texas. Government officials stated Sunday that for the first time, oiled and dead birds are being seen there. The governments wildlife report did not go into any details on the circumstances. Jim Suydam, Texas General Land Office spokesman, said he hadn't heard about the birds and the oil was still around 100 miles away from the border. It's also reported that the oil sheen is around 150 miles from Tampa, Florida.
Alabama's coastlines continue to get hammered with oil as well. Thad Allen, the Coast Guard Administrator for the government, has ordered more oil cleanup crews for oil skimming and additional containment berms, after surveying the area by air. "It's so widespread, and its intermittent. That's what is so challenging about this. Everyone wants certainty. With an oil spill like this, there isn't any," said Allen.
BP stated that they are planning a $360 million plan to put up six sand berms. This effort is being done with the intention to prevent oil from spreading, thus protecting the Louisiana wetlands. Although this is a grand gesture, it may be to little to late.
Kelcey Forrestier, a biology graduate visiting Florida's Okaloosa area said, "oil doesn't just go away, oil doesn't disappear. It has to go somewhere and its going to come to the Gulf beaches." He said its obvious that this oil damage will go on for years to come.
The oil is also making its appearance in Texas. Government officials stated Sunday that for the first time, oiled and dead birds are being seen there. The governments wildlife report did not go into any details on the circumstances. Jim Suydam, Texas General Land Office spokesman, said he hadn't heard about the birds and the oil was still around 100 miles away from the border. It's also reported that the oil sheen is around 150 miles from Tampa, Florida.
Alabama's coastlines continue to get hammered with oil as well. Thad Allen, the Coast Guard Administrator for the government, has ordered more oil cleanup crews for oil skimming and additional containment berms, after surveying the area by air. "It's so widespread, and its intermittent. That's what is so challenging about this. Everyone wants certainty. With an oil spill like this, there isn't any," said Allen.
BP stated that they are planning a $360 million plan to put up six sand berms. This effort is being done with the intention to prevent oil from spreading, thus protecting the Louisiana wetlands. Although this is a grand gesture, it may be to little to late.
Tuesday, June 1, 2010
Buying Oil Futures Biggest Oil Stock Drop In History Anadarko (NYSE:APC) BP (NYSE:BP) Transocean (NYSE:RIG) Halliburton (NYSE:HAL) Cameron (NYSE:CAM)
As well as BP, Anadarko, Transocean, and Halliburton all see significant drops at the close of the New York Stock Exchange at 4:00 pm. This was the foreseen outcome if BP failed on their "top kill" attempt. For Anadarko, this is their biggest loss on record.
Anadarko dropped 20 percent to $42.10, they own a 25 percent stake in the well. Transocean is the company responsible for leasing the drilling rig to BP which exploded on April 20th. They dropped to $50.04 which is a 12 percent loss.
Then there is Halliburton. They provided oilfield services on the well itself, dropped to $21.15 at a loss of 15 percent. Cameron plunged as well. They are responsible for the blowout preventer for Transocean's Deepwater Horizon Rig. Their are down to $31.89, losing 12 percent.
Finally, there's BP who had it's biggest decline since 1992. In one day BP lost 18 billion dollars of their market value, for a total market value loss of 68 billion dollars since April 20th.
Anadarko dropped 20 percent to $42.10, they own a 25 percent stake in the well. Transocean is the company responsible for leasing the drilling rig to BP which exploded on April 20th. They dropped to $50.04 which is a 12 percent loss.
Then there is Halliburton. They provided oilfield services on the well itself, dropped to $21.15 at a loss of 15 percent. Cameron plunged as well. They are responsible for the blowout preventer for Transocean's Deepwater Horizon Rig. Their are down to $31.89, losing 12 percent.
Finally, there's BP who had it's biggest decline since 1992. In one day BP lost 18 billion dollars of their market value, for a total market value loss of 68 billion dollars since April 20th.
Monday, May 31, 2010
BP's (NYSE:BP) New Plans, Will Make Spill Worse
As BP (NYSE:BP) is putting together a new plan, after the failed "top kill" attempt, it could only make things worse. Although it would only be temporarily.
Carol Browner, the White House energy czar said, "the American people need to know that it is possible we will have oil leaking from this well until August, when the relief wells will be finished." The other complication is that storm season is moving into the Gulf. As storms move in, this causes the oil recovery operations to come to a halt.
Michael Dixon, a lieutenant in charge of oil recovery operations at the Coast Guard Venice staging area said, "the way that the currents are treating this, and the ongoing leaking of oil, this is basically small spills all over the place. It's a series of a lot of small oil spills. We're fighting on a lot of fronts."
So our worst fears are being realized, our oceans will continue to be polluted, our shorelines destroyed, stocks will continue to fall, and the full effects on humans has yet to be fully realized.
Carol Browner, the White House energy czar said, "the American people need to know that it is possible we will have oil leaking from this well until August, when the relief wells will be finished." The other complication is that storm season is moving into the Gulf. As storms move in, this causes the oil recovery operations to come to a halt.
Michael Dixon, a lieutenant in charge of oil recovery operations at the Coast Guard Venice staging area said, "the way that the currents are treating this, and the ongoing leaking of oil, this is basically small spills all over the place. It's a series of a lot of small oil spills. We're fighting on a lot of fronts."
So our worst fears are being realized, our oceans will continue to be polluted, our shorelines destroyed, stocks will continue to fall, and the full effects on humans has yet to be fully realized.
Wednesday, May 26, 2010
BP: (NYSE:BP) No To Live Video Feed of "Top Kill"
Apparently, BP (NYSE:BP) has changed their mind. Originally, BP was among much hesitation , going to allow the live oil spill video to run uninterrupted throughout their "top kill" attempt. They're now saying no, and have already cut the oil spill video as of early this morning. This is leading many to wonder why BP wants to shut out the millions of people that their oil leak has, is, and will continue to effect for generations.
BP ensures it will report on the progress and on the outcome once complete. Part of the reasoning for this secrecy is to help shield the public from making rash decisions on what they may assume by what they see. Especially when it comes to stocks, this would not be adequate information.
If BP is successful, Gordan Gray from Collin Stewart analyst gives his opinion on the effect this would have on BP's shares. He says we would see an initial incline in the shares around mid 500's p/sh level after their 14 percent under preformance of the global sector. Any further recovery can be expected to take much longer though. A short term rise would be a good opportunity to switch from BP to Royal Dutch Shell which is seen as having a good valuation upside, a strong free cash flow turnaround, and a much stronger outlook for dividends.
BP ensures it will report on the progress and on the outcome once complete. Part of the reasoning for this secrecy is to help shield the public from making rash decisions on what they may assume by what they see. Especially when it comes to stocks, this would not be adequate information.
If BP is successful, Gordan Gray from Collin Stewart analyst gives his opinion on the effect this would have on BP's shares. He says we would see an initial incline in the shares around mid 500's p/sh level after their 14 percent under preformance of the global sector. Any further recovery can be expected to take much longer though. A short term rise would be a good opportunity to switch from BP to Royal Dutch Shell which is seen as having a good valuation upside, a strong free cash flow turnaround, and a much stronger outlook for dividends.
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