Encouraging to see oil price rise for the third consecutive week in April. WTI now up $10/bbl to over $45 today from around $35 early April. Also some $20 above the decade lows of $26.2 observed on 11 Feb 2016. Its a politicized commodity so i have no idea what is driving price movement, in particular after the OPEC Doha talks failed on April 18.
In any event, I welcome the rise to more normal levels around $50-60 which should reduce stresses in the global economy and hopefully (if not too late) reduce default rates in the credit HY market, which in the US and Norway is especially exposed to the energy sector. Last but not least, higher oil prices will again accelerate change towards renewable and more sustainable energy sources and relative dependence on unstable regions.
Good news for Fortum and other electricity producers...
And on a personal level, it certainly helps the share price of one of my div-yielding paying stocks - Finnish utility Fortum, which is majority owned my the Finnish State and has taken a real beating over last 12 months due to 1) declining wholesale electricity prices and 2) sale of Swedish and Finnish grids.
Will be interesting to see if oil can maintain some stability around these levels or in the $40-60 range.. that surely is a good outcome for all sides.
In any event, I welcome the rise to more normal levels around $50-60 which should reduce stresses in the global economy and hopefully (if not too late) reduce default rates in the credit HY market, which in the US and Norway is especially exposed to the energy sector. Last but not least, higher oil prices will again accelerate change towards renewable and more sustainable energy sources and relative dependence on unstable regions.
Good news for Fortum and other electricity producers...
And on a personal level, it certainly helps the share price of one of my div-yielding paying stocks - Finnish utility Fortum, which is majority owned my the Finnish State and has taken a real beating over last 12 months due to 1) declining wholesale electricity prices and 2) sale of Swedish and Finnish grids.
Will be interesting to see if oil can maintain some stability around these levels or in the $40-60 range.. that surely is a good outcome for all sides.
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