News

November 28, 2008

That Was The Week That Was ... In The UK Oil Equities Market

By Daniel O’Sullivan

Oil this week has recovered from its recent flirtations below US$50, currently trading around US$55 per barrel in New York. Against this vaguely encouraging background, there was a remarkably good five trading days from the main market UK oil and gas players. Whether fuelled by hope engendered by China’s deep interest rate cut or the prospect of another looming OPEC get-together, the main market listed sector as a whole rose 17 per cent. Of the three major integrateds, BG Group rose 17 per cent through the week to 920p, BP rose 14 per cent to 527p and Royal Dutch Shell rose 19 per cent to 1,714p.

Happily, this was a week in which almost every main board listed constituent racked up gains of at least a few per cent. But, as has often been the case in the last few months, while oil ticked up a few dollars, it was those companies seen as particularly leveraged to the black stuff which shot ahead more than most, whether through a predominance of oil in the production mix, or by virtue of large new volumes coming to market near-term, or fresh, large discoveries on their books. Thus Cairn...