Higher Crude Production Mark1199 Takes 12.5% Of Value Of Oil Companies. The prices of the large integrated oil companies around the world seem to have peaked this year, from the moment in which the Brent barrel , a reference in Europe, touched 70 dollars at the end of the first quarter of 2021. The increases in energy resources They have not slowed since then, and a barrel has reached $ 77 this month. Higher Crude Production Mark1199 Takes 12.5% Of Value Of Oil Companies
However, the main companies in the sector, the integrated oil companies with the largest capitalization (companies that are engaged in more than one of the main activities in the sector, such as crude oil production and refining) have not been able to keep up with the upward pace of growth. energy resource and, on average, they have fallen by 12.5% since they hit the highest of the year on the stock market , according to data compiled by FactSet.
Not a single company, out of the 37 integrated oil companies with a minimum capitalization of 1,000 million euros, and at least 5 analysts following them, is currently trading at highs for the year. All have fallen from that level, to a greater or lesser extent, especially since a barrel of crude reached $ 70 for the first time this year.
The dates coincide: Brent broke that level in the first days of March, and the bulk of the big oil companies, which are part of the Stoxx 600 Integrated Oil , did so a few days later. This sub-index reached its maximum for the year on March 12, and since then it has fallen by 9.5%, unable to continue the advances that the barrel did continue to experience, which still had around an additional 10% increase to reach the levels in which you are currently moving.
Although oil companies have moved away from their highs for the year, they are going through a relatively good year on the stock market, with increases of 35% on average for the 31 largest companies, and 29% for the 10 with the most capitalization. Higher Crude Production Mark1199 Takes 12.5% Of Value Of Oil Companies
The ones that regress the most
Among the 10 largest oil companies made up by capitalization, China Petroleum is the firm that has fallen the most from the highs it has hit this year. You lose 19.55%, but you still gain more than 12% in the year with the price of your shares in euros.
After it, the one that fell the lowest from the highs of the 10 largest is the French TotalEnergy, with a fall of almost 14%, which leaves the company’s annual profitability around 5%.
As for Repsol , the only Spanish one that is among the largest integrated firms in the sector, its fall from highs is around 19% , above the sector average, although it still earns 13% with it overall. of the year.
Oil, without potential
In the area of $ 70, the market consensus considers that the European barrel has already exhausted all its upward potential . On average, the estimate of prices managed by analysts that Bloomberg collects points to 67 dollars for the next few quarters. The highest that appears in the table is that of the German bank Commerzbank, of 75 dollars for a barrel, slightly above the 73.8 dollars in which Brent moves .
With no further advances expected for the price of crude from the market consensus, the prices of the largest oil companies appear to have peaked this year, at least for the moment.
In the last two days of the market, the Brent barrel has suffered falls of more than 4% , discounting, as explained by Bloomberg , that Saudi Arabia and the United Arab Emirates are approaching positions and could reach a production agreement soon.
If they manage to resolve their differences, they will close an agreement to increase the joint production of OPEC + . The cartel published this week that it does not expect demand to return to pre-pandemic levels until the second half of 2022. Higher Crude Production Mark1199 Takes 12.5% Of Value Of Oil Companies