Fuel crisis: City traders circle BP and Shell as they take positions for more price hikes
October 04, 2021 at 03:31 am EDT
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Investors are not banking on a swift resolution to the UK fuel crisis against a backdrop of continuing queues on forecourts and the Army being put on standby to help with deliveries, according to data shared with City A.M. this morning.
Analysis of investor movements with regards to BP, Royal Shell and Glencore shows that investors are increasingly bullish on these stocks as they expect prices will rise further, following their recent strong performance that was partly driven by the UK fuel crisis.
Soaring natural gas prices and concerns over possible winter shortages have motivated a number of investors to position accordingly, trading house GraniteShares shared with City A.M..
Figures for the past week show Royal Dutch Shell has seen the volume of funds traded rise by 19 per cent, while the volume traded in Glencore is up 45 per cent.
“The oil giants and Glencore have benefited recently from optimism about rising commodities prices and the UK fuel crisis,” said William Rhind, founder and CEO at GraniteShares.
“It would appear that investors don’t see an end to that any time soon and are positioning themselves for higher prices,” he said.
The post Fuel crisis: City traders circle BP and Shell as they take positions for more price hikes appeared first on CityAM.
BP p.l.c. is one of the world's leading oil groups. Net sales break down by activity as follows:
- refining and distribution (76.1%): At the end of 2023, the group had 7 refineries (including 3 in the United States) and a network of 21,100 service stations (including 8,200 in the United States);
- exploration and production of hydrocarbon (23.6%): oil (1,115,000 million barrels produced per day) and natural gas (196.6 million m3 produced per day);
- other (0,3%).
Net sales are distributed geographically as follows: the United States (28.8%) and other (71.2%).