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BP’s response to the crisis is pretty much as expected although have deigned not to release colleagues for three months. 2020 capex has been reduced by 25% to $12bn pretty much as Chevron announced last week in terms of size and with some of that inevitably happening in US onshore hydrocarbon sales will fall. Cue an effective profit warning as the upstream will be down on 4Q 2019 and the downstream is seeing ‘ a significant and growing decline in demand’ although no COVID-19 effects will be seen in that quarter. As I mentioned in the interview above, this is the perfect storm for integrated oils as with the fall in price the usual benefits are absent, there is no one to drive around at sub $2 gasoline… #BP.
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