Latest news with #oilprice
Globe and Mail
5 days ago
- Business
- Globe and Mail
WTI Oil Price Nearing USD70 Per Barrel Mark: Boon for ConocoPhillips?
The price of West Texas Intermediate (WTI) is currently trading above the $68 per barrel mark, approaching $70 per barrel. The rising price of the commodity, being backed by renewed tensions in the Middle East, is a boon for the exploration and production activities of ConocoPhillips COP. The upstream energy major has low-cost resources both internationally and in the United States. ConocoPhillips is more confident in its resources within the United States, which it refers to as the Lower 48, comprising major shale plays like the Permian Basin, Eagle Ford and Bakken. This demonstrates resilience in ConocoPhillips' business model. With the oil price significantly higher than the break-even price in the prolific resources, where COP is operating currently, the ongoing pricing environment of the commodity is highly favorable for the company's overall business, thereby aiding its bottom line. Is the Current Oil Price Favorable for XOM & EOG's Businesses? Exxon Mobil Corporation XOM and EOG Resources, Inc. EOG are two leading energy players, having a significant presence in upstream businesses. XOM has a strong presence in prolific oil and gas resources in the Permian and offshore Guyana. Advantageous volume growth from both resources has been supporting ExxonMobil's upstream activities, which contribute to the large scale of the company's total earnings. Having crude reserves in the United States and Trinidad, EOG Resources is among the energy majors in the domestic market. Having operations in the leading shale plays in the United States, the company is well-positioned to capitalize on the handsome crude prices. COP's Price Performance, Valuation & Estimates Shares of COP have lost 16.3% over the past year compared with the 19.1% decline of the composite stocks belonging to the industry. From a valuation standpoint, COP trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 5.17X. This is below the broader industry average of 11.07X. The Zacks Consensus Estimate for COP's 2025 earnings has been revised upward over the past seven days. COP stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include Stock #1: A Disruptive Force with Notable Growth and Resilience Stock #2: Bullish Signs Signaling to Buy the Dip Stock #3: One of the Most Compelling Investments in the Market Stock #4: Leader In a Red-Hot Industry Poised for Growth Stock #5: Modern Omni-Channel Platform Coiled to Spring Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%. Download Atomic Opportunity: Nuclear Energy's Comeback free today. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Exxon Mobil Corporation (XOM): Free Stock Analysis Report EOG Resources, Inc. (EOG): Free Stock Analysis Report
Reuters
16-07-2025
- Business
- Reuters
Russian oil price in roubles has stayed below the 2025 budget target
MOSCOW, July 16 (Reuters) - The average Russian oil price calculated in roubles has stayed below the federal budget's target for 2025, Reuters calculations showed on Wednesday, adding pressure to the budget that already faces a rising deficit. The weakness is largely the result of a stronger rouble, which has risen around 45% since the start of the year on the basis of an easing in geopolitical tensions and the tight monetary policy of the Central Bank. International oil prices priced in dollars, at the same time have lost about 10% of their value. According to the estimations, the average price of Russia's oil blend, calculated for taxation purposes, reached 4,701 roubles per barrel in the first two weeks of July, around steady with June's level but 11.1% below the updated budget's target. The finance ministry said last week the budget deficit reached 3.69 trillion roubles ($47.31 billion), or 1.7% of gross domestic product, in the first half of the year, the same as expected for the full year. Russia raised the 2025 budget deficit estimate to 1.7% of GDP in April from 0.5% after reducing the energy revenue forecast by 24% in anticipation of a prolonged period of lower oil prices. State spending on national defence was hiked by a quarter in 2025 to 6.3% of GDP, the highest since the Cold War, as the country continued its war in Ukraine, now in its fourth year. Economic uncertainty and increased output from OPEC+, the Organization of the Petroleum Exporting Countries and allies, including Russia, has weighed on oil markets. The rouble oil price is calculated on the basis of a Russian currency rate of 78.39 per $1 in the first two weeks of July and an average price of $59.97 per barrel. The government targets an oil rouble price of 5,281 roubles per barrel and a rouble rate of 94.3 per $1, while the dollar denominated price is set at $56 per barrel. ($1 = 78.0000 roubles)
Yahoo
14-07-2025
- Business
- Yahoo
Goldman Sachs raises Brent oil forecast for second half of 2025 to $66
(Reuters) -Goldman Sachs raised its oil price forecasts for the second half of 2025 on Monday, citing the risk of supply disruption, lower oil inventories in Organisation for Economic Co-operation and Development countries and Russia's production constraints. The bank expects Brent crude to average $66 a barrel in the second half of 2025, up $5 from its previous forecast, and WTI at $63, up $6. Its 2026 forecasts remain unchanged at $56 for Brent and $52 for WTI. "Our unchanged 2026 price forecast reflects an offset between a boost from higher long-dated prices and a hit from a wider 1.7 million barrels per day 2026 surplus," the bank said. Previously, it expected a surplus of 1.5 mbpd. Goldman Sachs now expects OPEC+, the Organization of the Petroleum Exporting Countries and allies, to unwind 2.2 mbpd of cuts by September, including a final 0.55 mbpd increase. Goldman flagged a range of possible outcomes. A drop in Iranian supply could push Brent up to $90, while increased stockpiling by countries such as China could keep prices closer to $60 in 2026. A full unwinding of the 1.65 mbpd of OPEC+ cuts from April 2023, which would be additive to the ongoing 2.2 mbpd OPEC+ cut unwind, could drag prices below the bank's baseline, potentially falling to $40 in a recession scenario by 2026. "Reduced spare capacity increases our confidence that prices will rebound after 2026," Goldman said. It based its bullish long-term view on factors including falling investment, a lack of new non-OPEC projects beyond 2026, and growing demand over the next decade. Goldman reiterated its cautious stance for 2026 and continues to recommend hedging against downside risk. "We still recommend buying oil puts (or put spreads) and selling calls," it said, suggesting investors sell a June 2026 $75 Brent call to fund buying a $55/45 put spread. Sign in to access your portfolio
Yahoo
13-07-2025
- Business
- Yahoo
Up another 6% in the last week! Is the BP share price ready to go gangbusters?
The BP share price (LSE: BP.) has had a good week. It climbed 6% and is now up more than 20% over the past three months. That offers some relief to long-suffering shareholders, although it's still down 11% over the past year. Tragically, the rally began when conflict between Israel and Iran drove the oil price from just over $60 to just under $80 a barrel. BP is not purely an oil producer, but energy prices remain the biggest driver of earnings. The oil price pulled back after the bombing stopped, but started rising again last week. That was partly down to Donald Trump delaying threatened tariffs, kicking the decision into August, while renewed Houthi attacks on shipping pushed the geopolitical risk premium higher. Reports that Trump may make a 'major' announcement on Russia added to the uncertainty. OPEC also updated its long-term forecast, projecting global oil demand will rise to 122.9m barrels a day by 2050, driven by growth in India, Africa and the Middle East. That helped steady nerves. There are dozens of moving parts. And the reality is that nobody has a clue where oil goes next. Which means nobody really knows what the BP share price will do either. To be fair, I could say that about any stock. BP released a Q2 update on 11 July. While reported upstream production rose, falling oil and gas prices took their toll. Oil averaged $67.88 a barrel in Q2, down from $75.73 in Q1. That could knock $600m to $800m off earnings. The gas and low carbon energy segment may face a further hit. The company expects stronger refining margins, rising from $15.2 to $21.1 a barrel, while oil trading should also deliver a strong result. Net debt has fallen slightly, but remains close to $30bn. BP's ailing share price has driven up the trailing dividend yield to an attractive 6.02%. Forecasts suggest that could climb to 6.3% next year. The board is still busily buying back billions of its own shares. BP's forward price-to-earnings ratio sits at 12.5, falling to 11 in 2026. Which looks decent. We also learned last week that BP is returning to Libya, signing a deal to explore three sites and reopen its Tripoli office. That may help improve long-term production. Still, strategy remains muddled with BP torn between shareholders demanding it refocuses on fossil fuels, while activists demand greater commitment to renewables. Expectations are modest, with 28 analysts forecasting a median 7.5% rise in the share price to 432.5p over the next year. As of 11 July the shares traded at 401.75p. Throw in the yield and the total return jumps to around 13.5%. I bought BP last autumn, and my double-digit loss is now in single digits. Add dividends, and I'm roughly flat. Could it go gangbusters from here? I'd like to think so but suspect the challenges and uncertainty are simply too great, especially with the world potentially slipping into recession. BP is still worth considering with a long-term view, for income as much as growth, but only as part of a balanced portfolio. This is a volatile sector. It's a long time since BP could be called a no-brainer buy. The post Up another 6% in the last week! Is the BP share price ready to go gangbusters? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Harvey Jones has positions in Bp P.l.c. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-07-2025
- Business
- Yahoo
Check out the latest easyJet share price and dividend forecasts. Time to consider buying?
The easyJet (LSE: EZJ) share price has bounced around over last five years or so and there's little sign of that changing. It's just hit another patch of turbulence, dropping 8.5% in a month. The shares are still up 15% over 12 months, but down around 10% over five years. This now looks like a FTSE 100 bargain, trading on a trailing price-to-earnings ratio of just 8.7. That's undeniably cheap. But then, it's looked cheap for some time. There's plenty going in its favour right now, including a low oil price and the growing success of the easyJet Holidays business. I've been baffled by its underperformance for months. So what's holding easyJet back? First-half results, published on 22 May, offered a few clues. The airline posted a pre-tax loss of £394m for the six months to 31 March. That was in line with expectations, and slightly better than last year if the timing of Easter's stripped out. Third-quarter bookings were 80% sold, with the fourth quarter already 42% full. easyJet Holidays is expecting 25% customer growth this year. Costs are coming down though. Capacity rose 12%, and its holidays arm posted a £44m profit, up £13m. Fuel cost per seat fell 8% year-on-year. The oil price remains low today, despite Middle East tensions. That could change, of course. The foundations look solid. Yet the market remains cautious. I don't really think of easyJet as a dividend stock. The trailing yield's a modest 2.3%, but there's more income coming our way. After three blank years during the pandemic, it paid 4.5p per share in 2023. Last year, that jumped almost 170% to 12.1p. That kind of rebound won't be repeated, sadly. The dividend's forecast to climb to 14.14p in 2025, then 15.44p in 2026 and 17.3p in 2027. Based on today's 525p share price, that would deliver a yield of 3.3% in two years. That's not going to get income hunters excited, but it's heading in the right direction. Reinvested dividends could quietly build over time if the airline keeps growing. The airline industry will never be risk-free. If fuel prices spike, that could quickly eat into confidence isn't exactly soaring either, particularly in Europe. The summer heat's another unknown. Repeated heatwaves could dent demand for southern getaways. But the outlook's upbeat. Analysts expect easyJet to report a full-year profit of £703m in 2025. And the group says it's on track to deliver £1bn in pre-tax profits within a few years. Forecasts are encouraging. Eighteen analysts produce a median share price target of 700p in 12 months. Now that's a 33% gain from where we are today. Twelve out of 20 rate the stock a Strong Buy, with two more saying Buy. None say Sell. That's no guarantee of future returns, but the numbers suggest easyJet could reward patient investors in the long run. With costs falling, bookings strong and dividends recovering, I think this is one FTSE 250 stock investors might consider buying. But they must be ready for more bumps along the way. The post Check out the latest easyJet share price and dividend forecasts. Time to consider buying? appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
