Supermajors vs OPEC

Big Oil


With OPEC relentless in its endeavour to manipulate the oil price, we can only presum to fend off the shale boom, even to attempt to put a complete halt to future production. Are the blows hurting the hand that has grown the punch.

With the financial woes of Dubai world, being dragged back up, and the same oil price manipulation having a negative effect in the region is the pressure on OPEC to once more reduce production and spark back an upward price action in crude Oil.

Although the BIG OIL companies have seen the price of oil bounce around a few times in throughout their life, they are  obviously prepared, where naturally they lose in the upstream they gain in the downstream. So where does this leave us with any possible trades. It’s back to fundermwntals in the evaluation of the companies themselves.

Big oil is a name used to describe the world’s five or six largest publicly owned oil and gas companies, also known as supermajors:  BP plc, Chevron Corporation, ExxonMobil Corporation, Royal Dutch Shell plc and Total SA, with ConocoPhillips Company also sometimes described as forming part of the group.

BP have and their well publicised troubles going back to the deep water horizon oil spill.

Shell announced recent job losses to the tune of 6500 according to The Gardian – Shell

The one we have our eye on is Total SA, with recent change in its CEO, posibly the start to better times in Europe a good P/E ration , good Total SAoperating cash flow, albeit a recent negative in actual cash flow, they have a lot of cash sat really for use.

Oppotunity: Possible trade with a good possible risk reward on the back of a favourable technical setup.

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