The Magazine for Asian Investors
Crude oil prices are still hot after the decision of OPEC+, but also due to the uncertainties in Ukraine. Both crude grades BRENT and WTI have increased since the beginning of the year in the double-digit range and are both just before the $90 mark at the moment.
The crude oil BRENT is traded at the moment at $88.62 per barrel. WTI crude oil is currently traded at $87.61 per barrel.
OPEC+ will continue to adhere to the current production policy, Reuter reported late this evening in Asia. Thus, the increase in production of 400,000 barrels per day will be maintained, which analysts predicted before the OPEC+ meeting. However, there were also voices before the meeting that do not exclude a feed increase in the near future, due to rising oil prices.
In Ukraine, the tone is getting harsher from the West. At the beginning of the week, the U.S. and U.K. issued further threats against Moscow. Russian President Putin, who has so far remained largely quiet, said today that the U.S. is trying to bring Russia into a war in Ukraine. Moreover, he believes that the U.S. is using Ukraine as a cover to impose further sanctions against Russia.
This sounds more like what the Ukrainian president has already said, that the Western media is playing up the situation and creating a situation that is negative for all sides.
That the U.S. is apparently seeking confrontation is becoming more and more likely, even after the U.S. decided today to send 3,000 troops to Ukraine. In addition, about 2,000 troops will be sent to Germany and Poland. This will provide further fuel for the tense situation.
As if the Ukraine crisis were not enough for the U.S., it is now sending guided-missile destroyers and fifth-generation fighter jets to the United Arab Emirates (UAE). The U.S. wants to support the UAE against the attacks of the Houthi rebels, and protect the oil supply chain.
Under these indications, oil prices have risen steadily since the beginning of the year. This has also driven up the shares of oil producers, which have been hitting new highs in series since the beginning of the year. In addition, Exxon Mobile (XOM) and Marathon Petroleum delivered the Q4 figures.
ConocoPhillips (COP) hit a new all-time high yesterday at $90.64.
Exxon Mobile (XOM) hit a new 52-week high yesterday at $77.19.
Suncore Energy (SU) hit a new 52-week high today at $30.23.
Marathon Petroleum reached a new 52-week high today at $76.64.
Exxon Mobile (XOM), meanwhile, reported its fourth-quarter 2021 figures on Tuesday. The company announced that earnings per share came in at $2.05, which exceeded analysts’ forecast of $1.93. In terms of revenue, however, analysts expected more. Revenue was $84.97 billion versus an expectation of $85.01 billion.
Marathon Petroleum (MPC) reported Q4 numbers today, Wednesday. Revenue exceeded analysts’ predictions. Earnings per share were $1.3 versus an expectation of $0.5622 and revenue was $35.61 billion versus expectations of $21.91 billion.