Energy sector declined on Friday
Crude oil fell on Friday, June 24, amid the Brexit vote and dragged the prices of crude oil–related companies down. At 3:42 PM EDT, the United States Oil ETF (USO), the Energy Select Sector SPDR ETF (XLE), and the PowerShares DB Oil ETF (DBO) fell by ~4.9%, ~3.5%, and ~4.5%, respectively.
Suncor makes moves to strengthen the balance sheet
Suncor Energy (SU), the Canadian integrated energy company, is working to strengthen its balance sheet by making strategic acquisitions. Suncor is planning to boost its offshore upstream operations by acquiring assets in Eastern Canada and North Asia.
According to the company’s announcement on June 24, it has closed its deal to increase its stake in the Syncrude oil sands by 5% for $937 million. As a part of its plan to divest ~$1.5 billion worth of assets, Suncor is trying to sell its Petro-Canada lubricant business for ~$800 million.
At 12:36 PM EDT on June 24, Suncor Energy fell by ~4.0% to $27.08. Since the beginning of 2016, Suncor Energy has gained ~5%.
Petrochina to open new refinery in China in October
Petrochina (PTR), the second largest state-owned refiner in China, is planning to open a new refinery in southwest China. No major new refineries had been started in China in the past two years due to the slump in oil prices.
However, the recent recovery of crude oil, which made the prices hover around $50 per barrel, is supporting new investments. This new refinery will be started in October 2016 with a capacity of 260,000 barrels per day. The new refinery is expected to boost the already-soaring Chinese crude imports, which has surged by 16% since the beginning of 2016. At 12:54 PM EDT on June 24, Petrochina was trading at $65.99, a drop of ~7.7%.