Displaying items by tag: oil

A Texas statute that targets environmental, social, or governance funds, includes a notable number of funds that don’t have an ESG focus. Out of 348 funds singled out by Texas Comptroller Glenn Hegar, 14% don’t qualify as ESG, according to Morningstar. In addition, almost 40% of the funds invest in the oil and gas industry based on data compiled by Bloomberg. The findings highlight just how much ESG investing has become a hot-button political issue. In fact, many of the leaders of investment firms that have been attacked for pushing ESG policies, have themselves been attacked for their continued investment in the oil and gas industry. In regards to the findings, Hortense Bioy, Global Director of Sustainability Research at Morningstar stated, “The fact that many funds on the banned fund list hold companies involved in the oil and gas industry raises questions about the research done by the Texas comptroller on these investments. Clearly, these funds aren’t boycotting energy companies.”

Finsum: A significant number of funds singled out by Texas Comptroller Glenn Hegar due to their ESG activities, don’t qualify as ESG.

Just after many Wallstreet firms were predicting oil prices to skyrocket passed $130 the jets have started to cool and oil prices are falling. Oil dipped below $100 a barrel this week and the two biggest factors are demand destruction and China’s latest Covid-19 outbreak. In the U.S. the Ukraine war and high gas prices are deteriorating the demand for commodities and demand is beginning to weaken which in turn affects energy prices. Demand will drop by 1.4 million barrels a day according to Rystad Energy. Additionally, the U.S. is a strong dollar is making it hard to purchase oil-backed goods abroad. China’s lockdown in Shanghai drastically reduces global demand and could be a threat in the intermediate future. If Bejing follows suit it could be devastating.

Finsum: Oil investors should watch out for Russia, which is starting to feel the pressure on its economy.

Oil has been dominating headlines but natural gas prices skyrocketed to a t 13 year high on the back of Russia’s war on Ukraine. To add to the fodder temperature forecasts for spring are remarkably low which means homes will be utilizing more natural gas in order heat homes. Overall prices are $8.05 per million British thermal units and are up 108% through the year already. Financial markets aren’t sure this price increase is permanent and Citi has only raised their end price target to $4.60 by the end of 2022.

Finsum: Keep an eye on natural gas bonds as just like oil surging, it could mean good things for companies ability to repay.

Oil prices have begun to stagnate just a hair, but they are still high enough to spur lots of production. U.S. oil output is expected to be 12.86 million barrels a day according to East Daley Capital, which is a 23% increase from their December forecast. Most of the increased production will come from shale Fields in the Permian Basin, as elevated prices can sustain drilling and production here. Additionally, supply chains are relatively more lubricated, the Russia-Ukraine conflict looks ongoing, and a massive Covid resurgence seems like a small probability. The Dallas said profits are more than sustainable to continue drilling in the Permian Basin and other shale sites.

Finsum: This increased production could be enough to finally cap the upward moving gas prices, but that effect could take some time.

Oil prices have begun to stagnate just a hair, but they are still high enough to spur lots of production. U.S. oil output is expected to be 12.86 million barrels a day according to East Daley Capital, which is a 23% increase from their December forecast. Most of the increased production will come from shale Fields in the Permian Basin, as elevated prices can sustain drilling and production here. Additionally, supply chains are relatively more lubricated, the Russia-Ukraine conflict looks ongoing, and a massive Covid resurgence seems like a small probability. The Dallas said profits are more than sustainable to continue drilling in the Permian Basin and other shale sites.

Finsum: This increased production could be enough to finally cap the upward moving gas prices, but that effect could take some time.