Seven oil companies have notified the Brazilian Petroleum, Natural Gas and Biofuels Agency (ANP) that they have already discovered signs of hydrocarbon resources so far this year.
In its latest economic forecasts, the World Bank is warning of much lower global growth in 2012. According to an article by Chris Giles in the Financial Times, “World Bank warns emerging nations,” if the eurozone is not funded, “global growth would be about 4 percentage points lower” than already-gloomy forecasts.
China’s appetite for foreign-denominated debt is now legendary, but it is not infinite. At this point, Beijing may be looking for harder assets than European and even U.S. paper.
With crude trading over $75 a barrel again, we have had a fantastic bounce back from the $69 level markets were flirting with last week. Back to business as usual.
In fact, $68 to $70 has been a major support level for the oil market going all the way back to last May, when crude prices finally broke out. This is where OPEC wants oil to trade, and any substantial dip below that trendline starts setting off alarm bells.
I still maintain that the integrated oil names are the best way to play off the BP disaster — as long as you avoid BP, of course. Exposure on the equity side lets you grab your dividend yield, a piece of any rebound in headline oil prices and even refining margins. Basically, you get to punch the ticket at every stage in the process from well to gas tank.