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Energy Sector Inched Higher on June 29

Val Kensington - Author

Aug. 18 2020, Updated 5:31 a.m. ET

Energy sector trading was stronger on June 29

Crude oil continued to trade higher on Wednesday, June 29, amid a significant draw-down in crude oil inventories. This supported the prices of crude oil–related companies.

On June 29 at 2:37 PM EDT, the United States Oil ETF (USO), the Energy Select Sector SPDR ETF (XLE), and the PowerShares DB Oil ETF (DBO) rose by ~3.6%, ~2.4%, and ~3.5%, respectively.

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Total wins bid to acquire 30% of Al-Shaheen field

According to reports released by Total SA (TOT) on Monday, June 27, the company won the bid to acquire 30% ownership in the Al-Shaheen oil field, which is the largest offshore oil field in Qatar. This contract has a lifespan of 25 years, and the remaining 70% of the ownership will be held by Qatar Petroleum (QP).

Patrick Pouyanné, the CEO of Total SA, announced that an investment of ~$2 billion will be allocated to the Al-Shaheen oil field from 2017–2022. Mining giants British Petroleum (BP) and Royal Dutch Shell (RDS.A) also participated in the auction for this contract.

Since the beginning of 2016, Total has risen by ~5%. At 12:17 PM EDT, Total was trading at ~$47.65, a gain of ~2.9%.

Chevron expects to become largest LNG supplier

As a multinational energy corporation, Chevron (CVX) is expected to benefit from its investments in clean environment investments, especially liquefied natural gas (or LNG). Chevron is planning to become one of the world’s largest LNG suppliers by 2020.

As part of this plan, Chevron has made huge investments in the LNG sector. This includes the investments into the Gorgon LNG project and the Wheatstone LNG project. Since the beginning of 2016, Chevron has declined by more than 5%. At 12:34 PM EDT, Chevron was trading at $104.50, a gain of ~2.8%.

Top and bottom five performers in the major integrated oil and gas industry

At 3:45 PM EDT, the top five performers in the major integrated oil and gas industry were:

  • Encana (ECA) rose by ~5.3%
  • BP (BP) rose by ~4.6%
  • Royal Dutch Shell B (RDS.B) rose by ~3.9%
  • Royal Dutch Shell A (RDS.A) rose by ~3.8%
  • Statoil ASA (STO) rose by ~3.6%

At 3:45 PM EDT, the bottom five performers in the major integrated oil and gas industry were:

  • Petrobras Argentina SA (PZE) rose by ~0.48%
  • Aegean Marine Petroleum Network (ANW) rose by ~0.91%
  • EQT GP Holdings LP (EQGP) rose by ~0.74%
  • Exxon Mobil Corporation (XOM) rose by ~1.6%
  • Sasol Ltd (SSL) rose by ~1.7%

The next article explains the performance of copper on Wednesday, June 29.


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