Close menu




July 7th, 2021 | 13:21 CEST

Gazprom, Saturn Oil + Gas, BP - First-class trading opportunities: dispute in OPEC causes prices to fluctuate

  • Oil
Photo credits: pixabay.com

A few days ago, the Organization of Petroleum Exporting Countries (OPEC) and several cooperation partners broke off their negotiations on future production volumes without any results. The fact that no new meeting date has been set, as reported by several news agencies, raises eyebrows. At first, it seemed that an expansion of the oil supply was now off the table and that nothing would stand in the way of a further increase in the oil price in the short term. However, the markets are now playing a different card. Market participants fear a rise in inflation as a result of oil prices rising too sharply. In addition, fears are being voiced that OPEC could break up. We show you which stocks you can use to take advantage of the current volatility!

time to read: 3 minutes | Author: Carsten Mainitz
ISIN: GAZPROM ADR SP./2 RL 5L 5 | US3682872078 , SATURN OIL+GAS O.N. | CA80412L1076 , BP PLC DL-_25 | GB0007980591

Table of contents:


    Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG
    "[...] China's dominance is one of the reasons why we are so heavily involved in the tungsten market. Here, around 85% of production is in Chinese hands. [...]" Dr. Thomas Gutschlag, CEO, Deutsche Rohstoff AG

    Full interview

     

    GAZPROM PJSC ADR - Price doubled

    Just a few days ago, Brent oil was trading at USD 77. Thus, the black gold increased by 80% within the last 12 months and is trading at its highest level since October 2018. In the long term, crude oil prices will rise mainly due to increasing global activity in the real economy and thus based on increasing demand. However, the oil production levels of major countries may significantly impact the price level of the commodity in the short term, as is happening at the moment. Now the markets are playing the fear card.

    In OPEC, the Saudis are setting the tone. Another heavyweight is Russia, which leads several cooperation partners. There were recent discussions about increasing daily production by 400,000 barrels per month starting in August to reflect the strengthening global economy. The talks failed because the United Arab Emirates demanded a higher production quota, and this was rejected. Is the organization now threatening to break up?

    Gazprom is a beneficiary of higher commodity prices. Shares in the world's largest natural gas producer have doubled since last fall. Even though natural gas is its primary business, a production volume of 41.6 million tons of crude oil in the past fiscal year is no small feat. The group currently has a market capitalization of USD 92 billion. Despite the strong share price performance in recent months, the stock is still moderately valued with a 2022 P/E ratio of 5. The projected dividend yield is an impressive 10%!

    SATURN OIL + GAS INC - Good news!

    Recently, the emerging Canadian oil and gas producer reported a series of good news. Saturn has begun field development in southeast Saskatchewan on the newly acquired Oxbow property. Two new non-operated wells are scheduled to be drilled this summer, with the first well to be drilled promptly. The acquisition of the Oxbow property takes the Company into new dimensions. Oxbow's facilities are located in southeast Saskatchewan and currently produce nearly 6,700 BOE per day. Other key aspects include that the Oxbow property has extensive infrastructure and facilities with direct pipeline connections to the global distribution network. The project covers 11,484 sq km of land. Saturn expects over 1,000 producing wells, 60 major facilities, 2,500 kilometers of connected pipelines and 244 wells ready to drill. From undeveloped land to multiple drill sites and pipelines, Saturn acquired assets with a replacement value of approximately CAD 1 billion at a fractional value.

    To add personnel to further expansion and development, the Canadians also announced that Kevin Smith has been recruited as Vice President, Corporate Development. Smith has over 20 years of experience in the energy and financial services industries, most recently serving as Vice President of Business Development for Renaissance Oil Corp. - he built the first independent oil and gas producer in Mexico in over 80 years. In addition, Smith held leadership positions in investment banking.

    The Company also announced that the conversion of the special warrants issued in the oversubscribed CAD 32.2 million private placement to acquire the Oxbow Property will now become freely tradable common shares and share purchase warrants. Each unit per special warrant will consist of one common share of the Company and one common share purchase warrant, with each warrant entitling its holder to acquire one common share of the Company at an exercise price of CAD 0.16 for a period of 24 months from the date of issuance of the special warrants. The share is currently quoted at CAD 0.135. The analysts of GBC are convinced of the prospects of the Canadians and formulate a price target of CAD 0.46.

    BP - Analysts see almost 50% price potential

    In a recently published study, the US bank JPMorgan raised its price target for the British crude oil company from 440 to 480 pence, or EUR 5.61, and confirmed its "Overweight" rating. That currently results in an upside of almost 50%! The experts refer to the good "ongoing capital discipline." High cash flows can be generated from this, which are also above the analysts' previous expectations, and allow the buyback of own shares to be significantly increased. In the short term, the experts believe that OPEC's rejection of higher production volumes will lead to rising oil prices and, as a result, stimulate positive share performance.


    At the moment, there is a lot to be said for high volatility in oil and gas stocks. Although the economy is picking up and demand for the commodity is rising, the dispute in OPEC, excessively high oil prices and thus rising inflation are still a burden. It is a matter of taste whether investors invest in large companies such as Gazprom or BP or smaller emerging players such as Saturn Oil+Gas.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author



    Related comments:

    Commented by Armin Schulz on April 25th, 2022 | 13:26 CEST

    BP, Saturn Oil + Gas, Shell - Oil shares in focus after the French election

    • Oil
    • Gas

    The EU wants to tighten Russia sanctions further. Oil and coal imports are to be stopped. According to Annalena Baerbock, it should be ready by the end of the year. But will it stay that way? At the moment, it has not yet been possible to bring an immediate import stop, also in order not to endanger the election in France. The duel between Macron and Le Pen is too close, and the challenger could use further price explosions in the energy sector to her advantage. JPMorgan sees the oil price at USD 185 if the EU immediately stops its imports. Once the election is over, the full import ban could come. France's Finance Minister LeMaire recently said that an EU ban on Russian oil is underway. We look at three beneficiaries of rising oil prices.

    Read

    Commented by Stefan Feulner on April 20th, 2022 | 12:57 CEST

    BP, Saturn Oil + Gas, Deutsche Rohstoff - Continued clear dependence

    • Oil
    • Gas

    We can spin it any way we want and make further ambitious plans for a faster transition from fossil fuels to renewables. Still, currently, the global economy is dependent on oil and natural gas. And this is likely to remain the case in the near future, as seen from the significant rises in Brent and WTI crude oil. The primary beneficiaries of this trend - JPMorgan declared a supercycle for oil as early as June 2020 - are undoubtedly the producers of the black gold.

    Read

    Commented by Armin Schulz on April 6th, 2022 | 10:08 CEST

    K+S, Barsele Minerals, Shell - Which commodity stocks belong in the portfolio?

    • Gold
    • Commodities
    • Oil

    Commodity prices are rising in almost all areas. To blame everything on the Ukraine conflict is too short-sighted. Fertilizer prices have significantly increased in the past year due to crop failures caused by natural disasters. Oil prices also began to rise last year. However, the sanctions against Russia gave the oil price a further significant tailwind. Gold has only been able to increase with the outbreak of the Ukraine war and is currently quoted at between USD 1,900 and 2,000. The high inflation should further increase the demand for gold. Today we look at three companies from the three sectors and analyze their potential.

    Read