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Week of June 26: Macro Factors Weigh Down Energy Sector (Continued from Prior Part) Oil sector is more sensitive to macro trends
Consol Energy (CNX) is the sole stock in the coal and consumable subsector in the Energy Select Sector SPDR Fund (XLE). While Kinder Morgan (KMI) was the worst performer in the storage & transportation subsector, Williams (WMB) was the best performer, witnessing a steep rise in its share price early last week. Investors could also consider the iShares U.S. Energy ETF (IYE) to gain exposure to energy stocks.
Greece shut down its banks and laid out capital controls, causing panic among global investors who fled from riskier assets towards safer havens. Further weakness is expected as the Greece situation will remain unresolved until a referendum, which is due later this week, as to whether the conditions for a bailout would be accepted. Following an initial surge against the euro on June 29, the US dollar retreated, causing the downside for dollar-priced oil to be limited.
Successful Iran deal could lead to oil oversupply, pressuring prices further
Major global powers, including the US, Britain, and China, among others, are trying to seal a deal to reduce Iran’s stockpiles of uranium. An agreement expected by the end of June would cause Iran’s disrupted supplies of oil to resume, leading to another round of global oversupply in crude oil.
Williams Companies rejects buyout deal and shares spike
Williams Companies (WMB) rejected a buyout offer originating from Energy Transfer Equity, which was worth $48 billion, early last week. The pipeline giant felt that the offered price was too low and is considering alternative buyers. Shares of Williams spiked up by more than 25%, following the rejection of the buyout deal by the company. Companies such as WMB and Kinder Morgan (KMI), which own energy infrastructure, have been relatively more protected from the plunge in gas and oil prices over the past year. This is due to the fact that these companies tend to operate on long-term, fixed-fee contracts, which earn them money irrespective of energy price movements.
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VanEck Vectors Global Alternative Energy ETF
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PRODUCER |
CODE : CNX |
ISIN : US20854P1093 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Consol Energy is a producing company based in United states of america. Consol Energy produces coal in USA, and holds various exploration projects in USA. Its main asset in production is BUCHANAN in USA. Consol Energy is listed in Germany and in United States of America. Its market capitalisation is 1.4 billions as of today (€ 1.3 billions). Its stock quote reached its highest recent level on June 06, 2008 at 99.79, and its lowest recent point on April 26, 2019 at 10.00. Consol Energy has 47 442 200 shares outstanding. |