|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||30.39 - 31.50|
|52-week range||24.50 - 54.22|
|Beta (5Y monthly)||1.68|
|PE ratio (TTM)||5.59|
|Earnings date||03 Nov 2020|
|Forward dividend & yield||N/A (N/A)|
|Ex-dividend date||25 May 2020|
|1y target est||61.49|
(Bloomberg) -- Oil gained as optimism that Congress may resume talks over another round of economic stimulus provided a glimmer of hope for an otherwise dreary demand outlook.Futures in New York advanced 1% on Thursday to the highest in nearly a week after earlier flipping between gains and losses in tandem with stocks. House Speaker Nancy Pelosi said she spoke with Treasury Secretary Steven Mnuchin, signaling openness to resuming stimulus talks.“Prospects of any kind of stimulus deal would be a big positive for energy,” said Josh Graves, senior market strategist at RJ O’Brien & Associates LLC.Still, doubts over a rebound in consumption are keeping rallies limited with lockdown measures increasing in some parts of the world. France and the U.K. reported another surge in infections, leading to tighter restrictions. The International Energy Agency’s Neil Atkinson said at a Bloomberg event Thursday that the agency is more likely to downgrade its demand forecasts than lift them in its next report.The coronavirus pandemic has showed signs of a resurgence and investors are also concerned over returning OPEC+ supply and production from Libya as its civil war abates. A possible collapse in the OPEC+ deal is the biggest downside price risk to the oil market, Standard Chartered analyst Emily Ashford said during a Bloomberg-hosted panel discussion.“We will continue to see a pricing regime for oil in the short-term that is characteristic of this summer,” said Harry Tchilinguirian, head of commodity research at BNP Paribas SA in London. “Moving essentially sideways, but buffeted by shifts in risk sentiment, while waiting for that elusive catalyst to break out.”Time spreads also signal further weakness. The spreads between the two nearest December contracts for both U.S. and global benchmark crude futures moved deeper into contango on Thursday, pointing to concerns of oversupply.Meanwhile, profits from turning crude into diesel remain historically weak, and some refiners are looking to close or convert plants. Total SE said its Grandpuits refinery will become a “zero-crude platform” in the coming years.Still, there are potential bright spots. Japanese refiners went on a buying spree last week, boosting the prices of some crude cargoes in the Middle East. In Brazil, run rates Petrobras SA’s 13 refineries jumped to their highest since January 2016, according to data from the country’s oil regulator compiled by Bloomberg.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- BNP Paribas SA is shutting its Swiss commodity trade finance business, exiting a sector it once dominated and which was hit by massive fraud.The plan could impact as many as 120 employees in its Geneva offices, the French bank said in a statement late Tuesday. Closing the business had been under consideration since at least the summer, people familiar with the situation told Bloomberg at the time.The former Paribas investment bank’s office in Geneva helped pioneer the use of letters of credit to finance oil trading in the 1970s, and became one of the leading lenders to the industry. However, BNP Paribas had been shrinking in commodity trade finance since 2014, when it was fined $8.9 billion for violating U.S. sanctions.Trading executives still estimated that BNP Paribas ranked in the top 10 providers of such financing. But in August, the bank halted all new commodity trade finance deals as it reviewed its involvement in the business in Europe, Middle East and Africa, Bloomberg previously reported.The collapse of Singaporean oil trader Hin Leong Trading (Pte) Ltd. when crude prices crashed this year drove several banks to reduce their exposure to the sector. A web of scandals in the Asian energy-trading hub -- including Hontop Energy (Singapore) Pte. and Agritrade International -- have already caused more than $9 billion in potential losses for global lenders.Societe Generale SA is in the process of closing its Singapore commodity-finance sector in the wake of the Hin Leong fraud, which ensnared more than 20 lenders. ABN Amro Bank NV has also announced it would quit commodity trade finance, while fellow Dutch lender Rabobank is also reviewing the business.In the world of trade finance, exporters and importers rely on credit lines to protect themselves against risks such as currency fluctuations, non-payment and political instability. The short-term financing governing sea voyages can provide quick profits for banks, but can go wrong when a cargo of commodities is used to get financing from multiple lenders -- or that cargo used to back the loans doesn’t exist.As the business of financing commodity traders grew, BNP was for many years the leading lender to the industry, accounting for as much as half of some trading houses’ bank lines.(Adds BNP history in final paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Saudi Arabia showed its determination to protect the oil recovery, warning short sellers not to challenge its resolve and delivering a rare public rebuke to a close ally that had been over-producing.After a meeting with fellow OPEC+ ministers on Thursday, Saudi Energy Minister Prince Abdulaziz bin Salman dropped clear hints that there could be a change of direction in production policy before the group’s next ministerial meeting in December.As the rebound in oil prices falters, the prince invoked his hero, former Federal Reserve Chairman Alan Greenspan, with an attempt to bend global markets to his will.“We will never leave this market unattended,” he said. “I want the guys in the trading floors to be as jumpy as possible. I’m going to make sure whoever gambles on this market will be ouching like hell.”Brent crude, the international benchmark, dipped below $40 a barrel last week for the first time since June. There are growing signs that the second wave of the coronavirus pandemic is hurting demand once again, as people and businesses around the world face tightening restrictions on their activities.In response, the Organization of Petroleum Exporting Countries and its allies will be “proactive and preemptive,” according to the communique from the Joint Ministerial Monitoring Committee, which oversees the cartel‘s production cuts. The panel “recommended that participating countries take further necessary measures when needed.”Brent futures rose 2.7% to 43.47 as of 7 p.m. in London, the highest since Sept. 4.Prince Abdulaziz confronted the challenge of a weakening oil market with a bluntness rarely seen inside the coalition of 23 producers.He opened Thursday’s teleconference with a forceful condemnation of members that try to get away with pumping too much crude. While the prince didn’t name any specific offenders, sitting in silence alongside him was UAE Energy Minister Suhail al Mazrouei, who had made a rare post-pandemic trip from Abu Dhabi to Riyadh to atone for exceeding his output target.The UAE has become one of the worst quota-breakers in OPEC+, making just 10% of its pledged cuts in August, according to the International Energy Agency.“Using tactics to over-produce and hide non-compliance have been tried many times in the past, and always end in failure,” Prince Abdulaziz said at the opening session of the OPEC+ committee that monitors the output cuts. “They achieve nothing and bring harm to our reputation and credibility.”While Mazrouei had previously admitted to a small excess in production, tanker-tracking data revealed the country was exporting far in excess of its output limit.“Attempts to outsmart the market will not succeed and are counterproductive when we have the eyes, and the technology, of the world upon us,” said Prince Abdulaziz.Compensation CutsThe UAE’s over-production was about 520,000 barrels a day in August, according to the IEA. The country will meet its output target in full this month and make additional cuts in October and November to compensate for previous shortcomings, Mazrouei said after the meeting.Since he became Saudi oil minister a year ago, Prince Abdulaziz has applied intense pressure to any country cheating on its quota. He introduced the notion of compensation cuts as a new means of ensuring compliance.The strategy has largely paid off. Even though the demands for compensation impose an onerous burden on countries that has scarcely been fulfilled — with the deadline for implementation extended again on Thursday to the end of the year — overall compliance has been higher than ever.Habitual laggards Iraq and Nigeria implemented more than 100% of their required cuts last month, according to the IEA, a level unseen in previous rounds of cuts. This has given OPEC+ greater credibility and created more space for the group to begin the planned easing of its cuts from 9.7 million barrels a day from May to July to 7.7 million in August.”You have to hand it to Prince Abdulaziz,” said Harry Tchilinguirian, head of commodities strategy at BNP Paribas SA. “Since he became Saudi oil minister, the kingdom has kept OPEC+ in line through his diplomatic and compelling powers of influence.”But the focus on compliance can only go so far in a market where the balance between supply and demand is deteriorating. OPEC+ didn’t discuss the possibility of restoring some of their output cuts at Thursday’s meeting. Yet, as central bankers around the world have learned over the last several weeks, the market can turn against them and force their hand.“We see how difficult the recovery to the pre-crisis levels is, the outlooks for recovery of the global GDP and oil demand are being revised,” Russian Energy Minister Alexander Novak said in his opening speech. “These are the trends we need to discuss today and take into account in our future actions.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.