BP predicts tight winter gas markets; Yahoo leaves China due to “difficult” conditions; Pfizer Profits Soar – Business Live | Business
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BP predicted that gas markets would remain tight this winter, after rising oil and gas prices pushed up profits for the energy giant.
BP beat City’s forecast this morning posting underlying earnings of more than $ 3.3 billion for the most recent quarter, driven by rising oil and gas prices and refining and good margins. business results.
And with the global economy facing an energy crisis, BP says:
Gas markets were very strong during the quarter and we expect them to remain tight during the peak winter demand period.
BP also predicts that oil prices will be boosted by this momentum for gas, with Brent crude already at its highest level in three years, around $ 85 a barrel.
Oil prices continued to rise and inventories returned to pre-pandemic levels. We expect oil prices to be supported by the continued decline in inventories, with the potential for additional demand from substituting gas for oil.
OPEC + decision making on production levels continues to be a key factor in oil prices and market rebalancing.
Rising energy prices took BP’s underlying replacement cost profit (its preferred measure of profit) to $ 3.322 billion for the third quarter of the year.
That’s 18% more than $ 2.798 billion in the second quarter and ahead of forecast by about $ 3.06 billion.
That’s significantly higher than the profit of $ 86 million a year earlier, in July-September 2020, when BP was recovering from the economic shock of the pandemic.
BP General manager, Bernard Looney, said:
It was another good quarter for bp – our business is generating underlying earnings and strong cash flow while continuing to focus on safe and reliable operations.
The rise in commodity prices has certainly helped, but I’m very happy that, quarter after quarter, we are doing what we said we would do: provide significant liquidity to strengthen our finances, increase distributions to shareholders and invest in our strategic transformation. This is what we mean by performing by transforming.
On a legal basis, BP actually recorded a loss of $ 2.5 billion – which it says is due to the way the hedges used to manage the risks of its liquefied natural gas contracts are accounted for. …
Wholesale gas prices have skyrocketed this year during the energy price crisis. The cost of next day delivery in the UK has risen from 60p / therm in January to over 300p / therm last month, although it has now fallen back to 155p / therm last night.
These wholesale prices forced a large number of suppliers to sub – yesterday Bluegreen Energy Services, which had only 5,900 customers, went out of business.
Bluegreen Energy said the crisis had left it in an “unsustainable situation” and that it had been “sadly … forced to make the difficult decision to go out of business”.
Also coming today
European stock markets are about to get off to a smooth start after hitting record highs yesterday.
Wall Street also hit new records last night, ahead of the two-day U.S. Federal Reserve policy meeting that begins today, where officials may decide to scale back its bond-buying stimulus program:
Ipek Ozkardeskaya, senior analyst at Swissquote, Explain :
Nothing stands in the way of bulls in equities: not chip shortages, not labor shortages, not the energy crisis, not the pandemic, not even the fact that the Federal Reserve (Fed) is on the verge. to announce the reduction of its program of massive purchases of bonds in order to contain the rise in inflation.
The bulls continue to push the rally in stocks to new highs. The S & P500 and the Nasdaq both renewed their highs in Monday’s session, as Bloomberg’s headline this morning was that “Supply Chain Crisis May Take Global Economy Down With It”.
Still, investors prefer to see the glass half full: We have a strong earnings season, 80% of S & P500 companies that have reported earnings so far are beating expectations.
- 9am GMT: Eurozone manufacturing PM survey for October
- 2 p.m. GMT: IBD / TIPP index of US economic optimism