BP Shares Surge After Anadarko Settlement

BP shares opened sharply higher Monday after the U.K. oil company reached a $4 billion out of court settlement with Anadarko related to a deadly explosion and oil spill at a U.S. offshore drilling platform.

Anadarko followed Japan's Mitsui & Co. and Weatherford International in agreeing to pay BP to settle claims over the Deepwater Horizon platform disaster, which killed 11 and led to the largest accidental marine oil spill in U.S. history. Drilling contractor Transocean's Deepwater Horizon rig had been leased by BP, while Anadarko and Mitsui also held stakes in the Macondo prospect.

Anadarko also agreed to drop its gross negligence claims against BP and transfer to BP the 25% interest it still holds in the Macondo well, which caused the devastating oil spill.

Like the Mitsui deal, BP's pact with Anadarko shelters the Houston based company from claims brought by private businesses and property owners seeking compensatory damages. But it doesn't protect Anadarko from punitive damages or penalties that might come from the U.S. government. Civil liability trials on the matter are scheduled to begin in February.....Read the entire Rigzone article.



The Most Complete, Current Trading News!

Crude Oil Rises to Seven Week High as Global Equity Markets Advance

Crude oil rose to a seven week high as equity markets advanced, increasing optimism that a growing global economy will bolster fuel demand. Oil climbed as much as 2.9 percent as the MSCI Emerging Markets Index climbed to its highest level in five weeks after India’s economy improved. The gain accelerated as the dollar weakened against the euro, raising demand for commodities as an alternative investment.

“We are seeing new fund money come into commodities,” said Carl Larry, president of Oil Outlooks & Opinions LLC in Houston. “Everyone is focused on growth and how best to profit from it. There are still a lot of jobless but the economy has begun to grow.” Crude oil for April delivery rose $1.93 or 2.5 percent, to $80.63 a barrel at 1:12 p.m. on the New York Mercantile Exchange. Futures touched $80.95, the highest level since Jan. 12. Prices have doubled from a year earlier.

Oil has traded between $69.50 and $83.95 a barrel this year. Futures have topped $80 every day since Feb. 19. “This is still a range-bound market,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “We are testing the top end of the range right now on some positive economic sentiment, but it’s questionable whether we can actually break through.”

“There’s no single news item behind today’s move,” said Tom Bentz, a broker at BNP Paribas Commodity Futures Inc. in New York. “We’ve been trading between $77 and the $85.50 area for the last week and have finally poked through on the upside. It is questionable if it can continue to advance from here”.........Read the entire article.


Here’s a Great Alternative to High Price Trading Courses


Share

Crude Oil Falls as Dollar Reaches Three Month High Against Euro

Crude oil fell for the first time in three days as the dollar strengthened against the euro, limiting the appeal of commodities as an alternative investment. Oil dropped as much as 2 percent as the dollar rose to a three month high against the European currency and U.S. equities declined. Futures are 12 percent below the year’s high of $82 a barrel reached Oct. 21. U.S. oil supplies are 6.4 percent above the five year average, the Energy Department said yesterday.

“The dollar’s stronger, and that’s for the most part the big thing here,” said Carl Larry, president of Oil Outlooks & Opinions LLC in Houston. Crude oil for January delivery fell 70 cents, or 1 percent, to $71.96 a barrel at 1:50 p.m. on the New York Mercantile Exchange. Earlier, futures touched $71.21 a barrel. Oil has risen 61 percent this year. The dollar strengthened to $1.4329 per euro at 1:51 p.m. in New York from $1.4531 yesterday. Earlier it touched $1.4305, the highest since Sept. 7......Read the entire article.

Share