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Oil majors listed on the stock market have benefited from rising crude prices, earning them nearly $200 billion in combined market value in 2022.

In the first 20 days of the year, together, the 10 largest oil companies on the Stock Exchange accumulated a profit of 199.645 million dollars. Leading the profits is the American Exxon Mobil, whose shares have risen this year 19.74% on Wall Street, trading at 73.27 dollars and a profit of 51,141 million dollars in market cap.

The British BP ranks second in terms of profits, with a return on the London Stock Exchange of 17.75%, adding 15,649 million dollars to its current capitalization.

The papers of the Latin American Vista Oil & Gas gain 16.67%, while those of the Dutch Royal Dutch Shell have risen 14.60%, and those of the French Total Energies gain 13.56% this year in Paris.

The Brazilian state Petrobras has a rebound of 11.49% in Sao Paulo and Chevron gains 9.46% in New York.

The lowest profits on the Stock Market so far in 2022 are from the Italian Eni Spa with only 8.76%, Repsol in Spain with 3.58% and the giant Saudi Aramco with 2.93 percent.

The takeoff that oil company shares have had is due to the rise in oil prices, which have reached maximum levels not seen since October 2014.

Benjamín Álvarez, Manager of Stock Market Analysis at CIBanco, explained that “these are extraordinary benefits that are derived mainly from the price of energy. In 2021 we saw a significant recovery in the fundamentals of the oil companies driven by the rise in the price of crude oil, in addition to the fact that demand was stable, and there was not a winter as harsh as in other years.”

He added that “this year we have seen interruptions due to Ómicron, due to supplies and due to geopolitical tensions that have underpinned the price of energy, which is essential for the profits of oil companies.”

In general, he said, the companies in the S&P 500 energy index are the ones with the highest growth expectations in the next 12 months, as well as being among the most attractive in earnings per share.

Mexican state-owned Petróleos Mexicanos completed Thursday the acquisition of the Texas refinery Deer Park from Royal Dutch Shell as part of its acquisition of the remaining 50%.

Pemex took control of the refinery on Thursday, finalizing the operation of almost 600 million dollars that makes it the sole owner of the facility, with a crude processing capacity of 340,000 barrels per day.

In general, the pandemic hit oil companies hard during 2020.

Benjamín Álvarez added that despite the recovery that was seen in the energy sector in 2021, linked to the sharp increase in the price of energy, the oil companies have not yet reached their pre-pandemic level.

Analysts assure

Crude could reach 100 dollars

The international price of oil could reach 100 dollars per barrel in the short term, benefited by geopolitical tensions in the world.

Brian Rodríguez, Economic analyst at Monex, explained in a document that “the environment of increased prices could be maintained, since there are various effects to consider such as the geopolitical tension in the Persian Gulf, the conflict between Russia and Ukraine, the interruption of production due to the extreme cold in Libya, Nigeria and Canada, the low levels of reserves and the effects on the supply chain”.

Monex explained that in the short term, everything would seem to indicate that the price of oil could reach levels of 100 dollars per barrel, a level that would be higher than the expectations of the Bloomberg consensus for 2022 and 2023 of 71.1 and 69.4 dollars, respectively.

In fact, in the first 20 days of 2022, the price of Brent from the North Sea accumulates a rise of 13.63% and is sold at 88.38 dollars per barrel, while West Texas Intermediate (WTI) has an advance of 15.54% and It is trading at $86.90 per barrel.

The Mexican export mix has a yield of 13.75% in the first three weeks of 2022 to be sold this Thursday at 81.09 dollars per barrel.

“Additionally, the world demand for oil maintains a favorable trend, since despite the start of the year with a significant increase in Covid-19 infections, economic expectations for 2022 have not changed as in previous waves (such as the Delta variant), at the same time that the main economic blocks maintain a solid growth expectation for 2022”, added Monex.

US crude inventories rose to 515,000 barrels last week.

Trading has been dominated by supply concerns, from short-term issues such as a temporary halt in flows on an oil pipeline from Iraq to Turkey to a continued shortfall by OPEC+ members to meet forecast supply increases. (Ariel Méndez, with information from agencies)

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