Oil and Gas Stocks Are On Fire this week as the November starts in a year with too much uncertainties and challenges the Oil and Energy industry had.

Crude oil prices went up where they left off last week. The U.S. oil price benchmark, WTI, was up around 2% to more than $57 a barrel. That caused several industry stocks soaring.

Oil prices approached a six-week high on Monday as investors have started growing a bit more optimistic about the sector’s prospects. Fueling today’s bullishness was rising hope that the U.S. and China will resolve their trade dispute, which has been weighing on oil demand.

Obviously any hope for the trade war to be ended or back to more normal conditions, the fears of a world economy recession will be less (being more conservative, we can say it will be postponed!)

In addition to that, Saudi Arabia continues to make progress on the initial public offering of its national oil company, suggesting that investors are warming up to the idea of buying shares.

The World’s Largest Oil Company Is Officially offering its stock to the public and this will impact the world’s energy market in different ways.

Aramco has entered the final stage of preparations for its much-anticipated initial public offering, by officially announcing it would list shares on the local Tadawul exchange.

“Today is the right opportunity for new investors to reap the benefits of Aramco’s ability to achieve value, and boost it on the long-term,” the chairman of Aramco, Yasir al-Rumayyan told a news conference as quoted by Reuters.

While the news is certainly welcome after months of uncertainty, the company has been shy on details. In the announcement, there was no word on the actual date of the float, the number of shares that will be offered on Tadawul, or the price.

But not all the news are positive in the Energy-sphere. There are still challenges to the sustainability of world peace and progress of the markets. issues like a probable economy crisis and recession, possibility of war in several geographical

A Wave Of Unprofitable Oil Is About To Hit The Market. The massive wave of investment that went into offshore oil projects earlier this decade may produce a lot of oil, but profits might not materialize.

Earlier this decade, between 2010 and 2014, oil prices traded at levels that are hard to imagine today, often rising above $100 per barrel. That led to huge wave of spending on costly, often high-risk oil projects, many of which were offshore in deepwater or ultra-deepwater.

As the Energy and Oil market shapes mostly in Persian Gulf area, it is important to mention Iran’s conditions and statements. Iranian Oil Minister Bijan Zanganeh was quoted as saying on Monday that he expects further production cuts to be agreed at the next meeting of the Organization of the Petroleum Exporting Countries (OPEC) in December.

“We expect the decline in oil production to increase further, which means that we will see a further decrease by OPEC to the market,” Iran’s semi-official Mehr news agency quoted Zanganeh as saying when asked about the next OPEC meeting.

Leave a comment

Your email address will not be published. Required fields are marked *

×





Need Help? Chat with us!
Start a Conversation
Hi! Click one of our members below to chat on WhatsApp
We usually reply in a few minutes