1703908235
An oil analyst says Red Sea fears have eased but the situation is still unstable.
Oslo Børs is covered in snow just before Christmas. Photo: Emilie Holtet / NTBPublished:
Yesterday 09:00
Just updated
The main index ended the day down 0.21 percent.
Oil prices fell for most of the day but recovered somewhat toward the end.
A barrel of North Sea oil is currently trading for $78.84 per barrel. That’s down 0.58 percent since midnight and about $1.5 less than at yesterday’s close.
Better returns forecast
It was a tough trading day for several container and tank shipping companies on Wednesday. The situation in the Red Sea, where several ships were recently attacked by Yemen’s Iran-backed Houthi movement, has caused unrest in the market.
Several shipping companies have stopped their trips across the sea, which has caused freight prices to rise.
Before the stock market opened on Thursday, shipping company Klaveness Combine Carriers said it would earn more than expected due to improvement in the tank and bulk markets.
The share rose by 3.81 percent.
The shipping index fell from the start on Thursday, but recovered somewhat in the morning. At the close of trading, the index closed with a loss of 0.25 percent. On Wednesday the decline was 3.18 percent.
Reasons for the fall in oil prices
Arctic Securities oil analyst Ole-Rikard Hammer points to two factors that could explain Thursday’s drop in oil prices: the situation in the Red Sea and disappointing oil inventory numbers from the U.S. on Wednesday.
– If Mærsk and other shipping companies want to resume sailing in the Red Sea and the Americans have shown that they are prepared to use military force if necessary, this has dampened fears of an immediate escalation. However, it is unlikely to be anything more than a kind of unstable status quo.
Ole-Rikard Hammer, oil analyst at Arctic Securities. Photo: Sebastian S. Bjerkvik
– However, there is reason to hope that the situation will calm down. Then the market will have time to focus on other things, including the relatively weak U.S. stock numbers on Wednesday evening, and therefore the price will fall somewhat, says Hammer.
He recalled that the price of oil has risen by around $7 to $8 in the last two weeks due to concerns about the situation in the region.
– Towards the end of the year the market is currently rather thin. It’s pretty common. As with the stock market, not many people want to take larger positions at the moment, says Hammer.
Bought shares for more than 21 million NOK
There was further stock market news after the market closed on Wednesday:
- Electromagnetic Geoservices: Kristian Siems Luxembourg-registered Siem Investments bought 12 million shares of Electromagnetic Geoservices (Emgs) at a price of NOK 1.8 per share. This corresponds to NOK 21.6 million. After the purchase, the investment company has a 33 percent stake in Emgs. The shares shot up 31.5 percent.
- Borgestad: Chairman Glen Ole Rødland bought Borgestad shares for NOK 15.6 million through the company Gross Management AS. Borgestad shares have fallen sharply on the Oslo Stock Exchange so far this year, losing more than 78 percent. The stock fell significantly after the company raised NOK 250 million in an offering in early November. The shares rose by 9.33 percent.
#status #quo #E24