E Weekly Energy Roundup: Oil And Gas Companies, Jan. 8 - 12

BP’s project partner Premier Oil (PMOIY) stated that its Ravenspurn well in the North Sea was a disappointment, although BP might still pursue resources in nearby areas as it continues to search for new sources of natural gas to meet Europe’s high demand.

Royal Dutch Shell (RDS-A, RDS-B)

Royal Dutch Shell saw similar price action to that of its peers, showing some weakness early in the week and then quickly recovering to close out the week with a gain. On Monday, January 8, 2018, shares of Royal Dutch Shell opened at $68.80 and closed out the week at $70.88. This represents a gain of 3.02% for the week.

Source: Fidelity Investments

Royal Dutch Shell posted a gain over the past two weeks with surprisingly little volatility. This would make the stock appealing to long-term investors over that period but not so much for traders due to the relative lack of intra-day price fluctuations. On January 2, 2018, the stock opened at $67.00 per share. It thus delivered a two-week gain of 5.79%.

Source: Fidelity Investments

Royal Dutch Shell was yet another company that was named in the New York City global warming lawsuit and as such this will remain a dark cloud hanging over the company until the suit is resolved. Investors should thus remain aware of the risks that the company will not achieve a positive outcome here and suffer large financial penalties.

Royal Dutch Shell also made headlines over the past week with news that it is considering purchasing a Dutch green energy utility. Although no estimate of a price has been released, the owners of the utility state that it is worth at least 3 billion euro. That would be a relatively small acquisition for a company of Shell’s size, but this could also serve as a publicity move to show the company’s commitment to developing green energy solutions going forward.

Eni (E)

Italian oil giant Eni's stock chart will look quite familiar to those of its peers. The company also saw its stock decline in the early stages of the week only to recover and post a respectable gain. On Monday, January 8, 2018, shares of Eni opened at $34.66 per share. The stock declined at first but then shot upward later in the week to close at $36.03. This gives the company a 3.95% gain over the week.

Source: Fidelity Investments

As was the case with Eni’s other European peers, the stock was not particularly volatile over the trailing two-week period. It also delivered some early gains before losing some ground in the middle of the period and ultimately recovering to deliver a two-week gain. The stock opened on January 2, 2018 at $33.19. Considering that it closed on January 12 at $36.03, it delivered a two-week gain of 8.56%.

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