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Total Stock Is Up 4% in Q3 2018 despite Oil’s Fall

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Dec. 4 2020, Updated 10:53 a.m. ET

Total stock compared to oil prices and markets

Total (TOT) stock has risen 4% in the third quarter so far despite the fall in oil prices. WTI, the benchmark oil, has fallen 6% in the current quarter.

However, the market has risen so far in the third quarter, with the benchmark SPDR S&P 500 ETF (SPY) up 7%.

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Total stock rises

Total stock has risen in the current quarter due to the steep rise in its stock in July. Oil prices also fell in July. So what led to the increase in Total stock in the month? Let’s find out.

Total rose in July mainly in anticipation of its second-quarter earnings results. Wall Street analysts had been expecting a stellar performance from the company in its second-quarter earnings. Total closed on its acquisition of Engie’s LNG (liquefied natural gas) portfolio in mid-July. The acquisition made Total one of the leading global LNG players.

On July 26, Total posted its second-quarter earnings. Total’s adjusted EPS rose 36% year-over-year to $1.3 per share. However, its adjusted EPS missed analysts’ estimate of $1.5, affecting its stock.

Following its earnings, Total stock was also affected by weaker oil prices, which fell earlier in the quarter led by the rise in oil supply by major oil-producing nations and concerns regarding global demand. The fall continued until mid-August. Since then, oil prices have partially recovered. Recently, fears regarding US sanctions on Iran and a trade war between the United States and China have been supporting oil prices. Still, oil prices are lower than they were at the beginning of the quarter.

Peers’ performances

Equinor (EQNR), Petrobras (PBR), and PetroChina (PTR) have risen 1%, 12%, and 2%, respectively in the current quarter. YPF (YPF) and ENI (E) have risen 17% and 2%, respectively, in the third quarter so far.

In the next article, we’ll evaluate Total’s moving averages.

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