Morning Sankey 4/6/21

By Paul Sankey Published on April 6, 2021 at 9:02 AM

BP announced the early achievement of its 35% debt target after the strength of Q1, and we think several unhedged oil companies will surprise with the strength of their profits after a $60/bbl quarter. We believe the overall market has lost track of just how profitable major oils are when oil prices are above $60/bbl, by which we mean the entire S&P500 upstream oil sector, with the major warning on levels of hedging exposure (see […]

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Morning Sankey 4/1/21

By Paul Sankey Published on April 1, 2021 at 8:16 AM

ExxonMobil is clawing its way to earnings respectability, after a brutal run of end-quarter 8k earnings guidance that were introduced as part of the company’s major push into more open and improved communication. The bad news is that the open communication policy introduction coincided with the nadir of ExxonMobil’s modern strategy and operational performance. The good news is that the company is grinding its way off the lows. There is a battle for board seats […]

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Morning Suez 3/24/21

By Paul Sankey Published on March 24, 2021 at 8:38 AM

Covering global oil markets, you can be sailing along peacefully and from nowhere, a new major event leaves you scrambling. And so a vast container ship blocks the Suez canal. Around 10% of world oil trade and 8% of world LNG trade move through the canal. Quite how the captain managed to hit the side of the canal and wedge the ship remains an open question, but we do know that the Suez is a […]

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