adplus-dvertising
Connect with us

Business

Has The Oil Market Finally Turned A Corner – OilPrice.com

Published

 on



Has The Oil Market Finally Turned A Corner? | OilPrice.com

Alex Kimani

Alex Kimani is a veteran finance writer, investor, engineer and researcher for Safehaven.com. 

More Info

Trending Discussions

Premium Content

Cushing

August has historically been brutal for oil and gas stocks. According to data from Schaeffer Research, the energy sector has consistently underperformed in August, with returns coming in negative in 8 of the last ten years. 

Oil field services companies have been among the biggest culprits, with Baker Hughes (NYSE: BKR), Schlumberger NV (NYSE: SLB) and Haliburton Co (NYSE: HAL) featuring among the ten worst-performing stocks in all sectors with average returns of -7.45%,-6.31% and -6.10%, respectively. 

Meanwhile, one of the top players in the Eagle Ford shale play, Apache Corp. (NYSE: APA), rounds off the list of shame with an average return of -6.17% over the past 10 Augusts.

However, this year is looking to buck that trend.

The energy sector’s favorite benchmark, the Energy Select Sector Fund (XLE), is up nearly 10% since the beginning of the month and almost +12% over the past 30 days. Apache leads the rallying pack, gaining 22% after posting decent Q2 results during its latest earnings call and announcing a significant find at its offshore Suriname prospect.

The latest leg up by oil stocks has come after the Energy Information Administration (EIA) reported two consecutive weeks of huge crude draws. This, coupled with growing hopes for another stimulus package, have raised hopes that the large supply overhang that has been crimping oil markets could finally be in the rearview mirror. Related: Iranian Oil Exports Much Higher Than Official Data Suggests

Source: Yahoo Finance

Source: CNN Money

Big Crude Draws

Last week, the EIA reported that crude oil inventories for the week ending July 31 had contracted by 7.4 million barrels with the American Petroleum Institute reporting an even bigger draw of 8.587 million barrels. Analysts were expecting a much smaller inventory decline of 3.267 million barrels for the timeframe.

The surprise decline followed yet another week of a larger-than-expected draw. The previous week, the EIA had announced a 10.6 million barrel decline in crude inventories, marking the largest drop in more than six months.

As expected, oil prices have reacted positively to these developments: WTI is trading at $42.36/barrel, a level it last touched in early March while Brent crude is changing hands at a five-month high of $45.20. Related: Equinor Shakeup Hastens To Move Away From Oil

The larger crude draws are an encouraging sign that recovery in oil demand is on the right track.

But before the bulls can start doing a victory lap, there are a couple of worrying signs and data points that suggest that this market is still a long way from being out of the woods.

Weak Refining Margins

Despite the large crude draws, a buildup in distillate inventories as well as refining margins that remain a long way off their pre-crash levels imply that the oil outlook remains shaky at best.

The EIA reported a 700,000-barrel build in gasoline inventories for the week ending July 24, a reversal from the 1.8-million-barrel draw a week earlier. The energy watchdog also reported an inventory increase of half a million barrels in distillate fuels, compared with a 1.1-million-barrel inventory build for the previous week.

However, the biggest red flag remains persistently weak refining margins.

On Tuesday, the CME Group quoted gasoline crack spreads at just $9.57/barrel, or about half their February average. Crack spreads represent the economics of refining crude into its various constituents and tend to be a good barometer of real-time fuel demand. Despite a gradual re-opening of economies, the global air industry–one of the biggest consumers of oil–remains very weak. 

The EIA reported that although U.S. passenger airline traffic doubled in June from May’s levels, it was still 80% below last year’s corresponding period. Reuters also reported that fuel demand by Asia’s economic powerhouse, India, had hit reverse gear, slipping 21% Y/Y in July and 13% compared to a year ago after staging an encouraging recovery. India has been among the countries hardest hit by the pandemic, with nearly 2 million infections and resurging infections that have prompted new lockdowns and fears that other parts of the world may soon follow.

Then there’s the big question of whether OPEC relaxed its production cuts too soon.

Starting this month, OPEC trimmed its historic production curbs by about 2 million barrels/day to 7.7 mb/d. But as BNP Paribas’ head of commodity strategy Harry Tchilingurian has told Bloomberg, there are genuine concerns that rising OPEC+ production could coincide with an uneven recovery in oil demand as India has just shown us.

It’s indeed a precarious situation with OPEC+ risking falling victim to its own success.

But then again, uncertainty is the new normal in this market, making calling the bottom of one of the worst oil crises in modern history a fool’s errand.

By Alex Kimani for Oilprice.com

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today


Back to homepage

<!–

Trending Discussions

–>

Related posts

Let’s block ads! (Why?)

728x90x4

Source link

Business

Stop Asking Your Interviewer Cliché Questions

Published

 on

Most job search advice is cookie-cutter. The advice you’re following is almost certainly the same advice other job seekers follow, making you just another candidate following the same script.

In today’s hyper-competitive job market, standing out is critical, a challenge most job seekers struggle with. Instead of relying on generic questions recommended by self-proclaimed career coaches, which often lead to a forgettable interview, ask unique, thought-provoking questions that’ll spark engaging conversations and leave a lasting impression.

English philosopher Francis Bacon once said, “A prudent question is one half of wisdom.”

The questions you ask convey the following:

  • Your level of interest in the company and the role.
  • Contributing to your employer’s success is essential.
  • You desire a cultural fit.

Here are the top four questions experts recommend candidates ask; hence, they’ve become cliché questions you should avoid asking:

  • “What are the key responsibilities of this position?”

Most likely, the job description answers this question. Therefore, asking this question indicates you didn’t read the job description. If you require clarification, ask, “How many outbound calls will I be required to make daily?” “What will be my monthly revenue target?”

  • “What does a typical day look like?”

Although it’s important to understand day-to-day expectations, this question tends to elicit vague responses and rarely leads to a deeper conversation. Don’t focus on what your day will look like; instead, focus on being clear on the results you need to deliver. Nobody I know has ever been fired for not following a “typical day.” However, I know several people who were fired for failing to meet expectations. Before accepting a job offer, ensure you’re capable of meeting the employer’s expectations.

  • “How would you describe the company culture?”

Asking this question screams, “I read somewhere to ask this question.” There are much better ways to research a company’s culture, such as speaking to current and former employees, reading online reviews and news articles. Furthermore, since your interviewer works for the company, they’re presumably comfortable with the culture. Do you expect your interviewer to give you the brutal truth? “Be careful of Craig; get on his bad side, and he’ll make your life miserable.” “Bob is close to retirement. I give him lots of slack, which the rest of the team needs to pick up.”

Truism: No matter how much due diligence you do, only when you start working for the employer will you experience and, therefore, know their culture firsthand.

  • “What opportunities are there for professional development?”

When asked this question, I immediately think the candidate cares more about gaining than contributing, a showstopper. Managing your career is your responsibility, not your employer’s.

Cliché questions don’t impress hiring managers, nor will they differentiate you from your competition. To transform your interaction with your interviewer from a Q&A session into a dynamic discussion, ask unique, insightful questions.

Here are my four go-to questions—I have many moreto accomplish this:

  • “Describe your management style. How will you manage me?”

This question gives your interviewer the opportunity to talk about themselves, which we all love doing. As well, being in sync with my boss is extremely important to me. The management style of who’ll be my boss is a determining factor in whether or not I’ll accept the job.

  • “What is the one thing I should never do that’ll piss you off and possibly damage our working relationship beyond repair?”

This question also allows me to determine whether I and my to-be boss would be in sync. Sometimes I ask, “What are your pet peeves?”

  • “When I join the team, what would be the most important contribution you’d want to see from me in the first six months?”

Setting myself up for failure is the last thing I want. As I mentioned, focus on the results you need to produce and timelines. How realistic are the expectations? It’s never about the question; it’s about what you want to know. It’s important to know whether you’ll be able to meet or even exceed your new boss’s expectations.

  • “If I wanted to sell you on an idea or suggestion, what do you need to know?”

Years ago, a candidate asked me this question. I was impressed he wasn’t looking just to put in time; he was looking for how he could be a contributing employee. Every time I ask this question, it leads to an in-depth discussion.

Other questions I’ve asked:

 

  • “What keeps you up at night?”
  • “If you were to leave this company, who would follow?”
  • “How do you handle an employee making a mistake?”
  • “If you were to give a Ted Talk, what topic would you talk about?”
  • “What are three highly valued skills at [company] that I should master to advance?”
  • “What are the informal expectations of the role?”
  • “What is one misconception people have about you [or the company]?”

 

Your questions reveal a great deal about your motivations, drive to make a meaningful impact on the business, and a chance to morph the questioning into a conversation. Cliché questions don’t lead to meaningful discussions, whereas unique, thought-provoking questions do and, in turn, make you memorable.

_____________________________________________________________________

 

Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.

Continue Reading

Business

Canadian Natural Resources reports $2.27-billion third-quarter profit

Published

 on

 

CALGARY – Canadian Natural Resources Ltd. reported a third-quarter profit of $2.27 billion, down from $2.34 billion in the same quarter last year.

The company says the profit amounted to $1.06 per diluted share for the quarter that ended Sept. 30 compared with $1.06 per diluted share a year earlier.

Product sales totalled $10.40 billion, down from $11.76 billion in the same quarter last year.

Daily production for the quarter averaged 1,363,086 barrels of oil equivalent per day, down from 1,393,614 a year ago.

On an adjusted basis, Canadian Natural says it earned 97 cents per diluted share for the quarter, down from an adjusted profit of $1.30 per diluted share in the same quarter last year.

The average analyst estimate had been for a profit of 90 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Oct. 31, 2024.

Companies in this story: (TSX:CNQ)

The Canadian Press. All rights reserved.

Source link

Continue Reading

Business

Cenovus Energy reports $820M Q3 profit, down from $1.86B a year ago

Published

 on

 

CALGARY – Cenovus Energy Inc. reported its third-quarter profit fell compared with a year as its revenue edged lower.

The company says it earned $820 million or 42 cents per diluted share for the quarter ended Sept. 30, down from $1.86 billion or 97 cents per diluted share a year earlier.

Revenue for the quarter totalled $14.25 billion, down from $14.58 billion in the same quarter last year.

Total upstream production in the quarter amounted to 771,300 barrels of oil equivalent per day, down from 797,000 a year earlier.

Total downstream throughput was 642,900 barrels per day compared with 664,300 in the same quarter last year.

On an adjusted basis, Cenovus says its funds flow amounted to $1.05 per diluted share in its latest quarter, down from adjusted funds flow of $1.81 per diluted share a year earlier.

This report by The Canadian Press was first published Oct. 31, 2024.

Companies in this story: (TSX:CVE)

The Canadian Press. All rights reserved.

Source link

Continue Reading

Trending