Oil Price Impact on European Oil Stocks

13 days ago

Koe Mele

"So, all eyes on oil prices. We're looking at that situation in Venezuela. How are we seeing the response in oil companies? >> Yeah. Well, it's it's a little bit weak. So BP, Shell, Total, NE, all of them were down this morning on this latest development. So Trump said that Venezuela would send 50 million barrels of oil to the US, which is worth about 2.8 billion. And that announcement sent oil prices falling. And of course, when oil prices are weak, shares in oil companies do tend to follow. Um, it's worth saying that the amount of oil that we're talking about here is fairly insignificant economically and it will not necessarily meaningfully change the supply in the market, but politically, of course, it is a big move and it has consequences even beyond Venezuela as well."

The speaker discusses how political maneuvers in Venezuela, including a 50 million barrel oil shipment announced by Trump, have led to weaker oil prices, impacting European oil stocks. Although the economic quantity is minor, the political implications are significant and could affect market sentiment in the short term.

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