The two US oil agencies have reported on their lowest first-oriented profits on Friday because they achieved the economic outcome of President Trump’s trade war, which weakened consumer confidence and reduced oil prices.
Our crude prices are below the barrel below the $ 60 this week, a marginal underneath which many companies cannot earn money drilling money. Just before taking charge of Mr Trump, crude oil is now about $ 20 barrels cheaper. Not only the oil is coming low, the company is paying more for steel and other materials because of the tariff imposed on the President.
There are signs that some companies are already pulling back.
Until last week, the number of rigs drilling wells in the United States’s largest oil field Permian sink was reduced by 3 percent in a month, according to Baker Hughes, supplying oil field service. Bak’s Hughes Executives said last week that customers of this company were stopping prudence, and this year the cost across the industry is decreasing.
“We are seeing significant low pressure on prices and margins. In this environment we are more important to focus on what we can control,” Amin Mobil’s chief executive Darren Woods told analysts on Friday.
Chevron Mr. Trump reflects the market before announcing its latest tariffs published by the United States largest oil and gas company Axon. At the same time, the oil cartel, known as OPEC, was surprised to market that its members would plan to pump more oil more.
In the first three months of the year, the profit of the exeon has reported $ 7.7 billion, which has decreased by about 6 percent over a year ago.
Chevron’s first-quarter profit has dropped to over a third of a third of $ 1.5 billion, as the company has earned less each barrel of oil he produced. Low margins also hit earnings in refinement.
The second largest US oil company, Chevron, said it would spend less in 2021 and it did not change its annual production or capital expenditure forecast. However, the agency says that it will spend the second quarter on the first three months of the year on the share bikes.
“We feel comfortable where we are right now,” said Aimia Boner, chief financial officer of the organization. “We’ve navigated the cycles before. We know what to do.”
Chevron’s share prices have risen by about 2 percent on Friday afternoon, compatible with the almost broad market, which has been achieved in a report that shows that the US economy has added more jobs in April than analysts. The share price of the comic was slightly changed.
The question for many energy companies is how long oil prices will be about $ 60 or barrel or less. If they fall back at $ 50, according to the S&P Global Commodity insight, domestic production may decrease by about 8 percent in one year. The United States is the largest oil producer in the world.
Companies are spending on where they can spend more precision about the US trade policy, Joseph Estevs, CEO of Maine Point, the Consultant Agency on Operation and Supply discipline.
Mr. Esteves said, “It reaches the point of any stone, no couch cushion is undesirable,” Mr. Estaves said.
Mr. Woods said that the price of low products could create interesting acquisition targets for other companies, which last year bought the pioneer natural resources for about $ 60 billion.
“We want to make sure we take any chance that we are there that we see there,” he said.
Mrs. Boner says Chevron is feeling a “limited direct impact” from the tariff. He said the company was working to eliminate the effects by buying a steel supply locally, he said. Chevron assumed that the cost of the well in the United States would vary 1 percent due to tariffs.
Mr. Trump faces a biden-era policy after taking steps to remove the activity in Venezuela, which allows more oil production in the country. New rules already have an effect. Executives say the company has been unable to load oil to exports from Venezuela to the United States due to its change in its license, executives said.
“The barrels are flowing, they are not only flowing to the United States today,” Shevron’s chief executive Mike Rith told analysts.
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