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Highlights
- The Organisation of the Petroleum Exporting Countries (OPEC+) announced that 2021 demand is expected to remain strong despite rising Delta variant cases
- It estimates global oil demand to rise by 6.6 per cent in 2021, same as its earlier forecast in June.
The Organisation of the Petroleum Exporting Countries (OPEC+) announced that the oil producing group would maintain its 2021 demand forecasts, despite rising cases of the Delta variant.
OPEC reported oil demand to increase by 6.6 per cent by 2021, or by 5.95 million barrels per day (bpd). The estimates remained consistent with the June report.
OPEC+ also stated that shale gas is set to rebound, increasing its 2022 forecast shale output target by 60,000 bpd from its June report. It now expects shale output to reach up to 560,000 bpd in 2022.
However, the report contradicts the International Energy Agency’s (IEA) outlook, which lowered its forecasts for this year.
In this article, we take a closer look at 3 oil and gas stocks:
- BP PLC (LON: BP)
FTSE 100 index listed company BP is the UK based multinational oil and gas major in the sector. BP’s and another oil major Royal Dutch Shell’s (LON: RDSA) shares traded in the red after the global energy body IEA cut oil demand forecasts, citing rising Delta variant of the covid-19 virus.
The IEA reported July demand slowed by 120,000 bpd from June. June’s demand stood at 3.8 million bpd. IEA also reduced its 2021 demand forecasts for H2 2021 by 550,000 bpd.
(Image Source: Refinitiv)
BP’s shares were trading at GBX 306.90, down by 0.02 per cent, as of 13 August at 08:07 hrs GMT+1.
BP’s market cap stands at £61.98 billion and its year to date return is at 20.41 per cent as of 13 August.
Also Read: BP Invests In 9 GW US-Based Solar Projects
- Royal Dutch Shell PLC (LON: RDSA)
Another FTSE 100 oil major Royal Dutch Shell was also trading in the red following the IEA report.
The company also announced that it intends to make a full and final settlement of up to US$ 111.68 million to the Ejama-Ebubu community based in Nigeria over an oil spill case that occurred over 50 years ago.
(Image Source: Refinitiv)
RDSA’s shares were trading at GBX 1,462.40, down by 0.45 per cent, as of 13 August at 08:09 hrs GMT+1.
RDSA’s market cap stands at £60.29 billion and its year-to-date return is at 12.71 per cent as of 13 August.
- Rosneft Oil Company (LON:ROSN)
FTSE IOB index constituent Rosneft is a Russia based integrated energy company. The company recently announced the completion of its FY 2020 dividend payments of up to RUB 73,535.05 million in July.
(Image Source: Refinitiv)
Rosneft’s shares were trading at USD 7.65, up by 0.22 per cent, as of 13 August at 08:12 hrs GMT+1.
Rosneft’s market cap stands at £58.45 billion, and its year-to-date return is at 35.46 per cent as of 13 August.
Also Read: 5 FTSE oil and gas stocks in the limelight
Conclusion
Thus, due to the recent conflicting 2021 crude oil demand estimates from OPEC and IEA announced today, the top 3 major oil companies on the LSE, according to market cap, have temporarily been impacted in today’s trading session.
