Institutional Asset Managers Liquidate Exposure to Brazil ETFs
The 13F filings of major institutional asset managers for the second quarter of 2015 offer a gloomy picture for Brazil.
US refiners have profited from access to cheaper crude oil inputs. But a series of refinery projects being ramped up in Latin America could stall exports.
Wood Mackenzie research shows that the oil majors have deferred more than 45 significant oil and gas projects since the beginning of the crude oil price collapse last year.
Consol Energy posted a net loss of $603 million for 2Q15, which translates to a loss of $2.64 per diluted share. In 2Q14, the company posted a net loss of $25 million.
The coal subsector within the Energy Select Sector SPDR ETF (XLE), represented solely by Consol Energy (CNX), rose by 2.5% last week.
Morgan Stanley analysts Haythem Rashed and Martijn Rats presented a series of premises prevailing in the market regarding a possible rebound in oil prices.
With sanctions against Iran slowly going away, there are indeed opportunities for US and European oil companies in Iran.
As per data from the U.S. Commodity Futures Trading Commission, hedge funds and other asset managers have turned extremely bearish on oil prices.
Oil and gas drilling firm Chesapeake Energy (CHK) is cutting its common stock dividend in order to maintain capital expenditure in the wake of a sharp nosedive in energy prices.
While oil drillers are reeling from a free fall in crude oil prices, refiners such as Phillips 66 (PSX) and Valero Energy (VLO) are churning out healthy margins.
Default rates for the high yield energy sector rose with two more E&P (exploration and production) firms filing for Chapter 11 bankruptcies.
Carl Icahn believes that the high yield bond market is becoming riskier than ever. Icahn asserted that if a correction were to occur in the junk bond market, it is likely to be massive.
Prices for refiners such as Marathon Petroleum Corp and Tesoro edge more toward the upper Bollinger band. This indicates a possibly overbought state of these stocks.
Refiner Valero Energy announced that its board authorized share repurchases of an additional $2.5 billion. This brings the total amount under Valero’s stock repurchase plan to $2.9 billion.
According to data from the U.S. Energy Information Administration, natural gas constituted 31% of power generation in April 2015, compared with 22% in April 2010.
Consol Energy was the worst performer in the Energy Select Sector SPDR ETF, while refiner Tesoro posted the most gains in its respective subsector.
Although refiners tend to benefit from the crack spread between lower crude oil prices and higher prices of refined products, their good times are not expected to last forever.
Not surprisingly, US coal firms have fared poorly during the bull market over the past five years. Moody’s has labeled most publicly traded debt belonging to coal firms as “junk.”
WPX Energy announced that it entered an agreement to purchase RKI Exploration & Production for $2.35 billion. This deal is the largest shale acquisition since the $2 billion deal by Noble Energy for Rosetta Resources in May.
Hedge fund–like mutual funds invited just over $1 billion until May 2015, as opposed to $39 billion during 2014 and a massive $96 billion during 2013.
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