The Norwegian Fund sells Novatek | 15 March 2019

The Norwegian Fund sells Novatek


#BRENT:


In the world there is a decrease in the production of black gold. This factor will have a positive impact on the cost of oil. Saudi Arabia pumped 10.1 million barrels per day of crude in February in yet another sign that OPEC’s largest producer and de facto leader was cutting more than pledged under the OPEC+. Drilling platforms have been shutting down in North America for two weeks in a row. The political crisis in Venezuela has caused a decline in oil production in the country. The United States will strengthen sanctions against PDVSA.


Trading recommendation: Buy 65.55 and take profit 67.20.


The Norwegian Fund sells Novatek


#Novatek:


The Norwegian government recommended that the sovereign wealth Fund get rid of the shares of more than 100 oil and gas companies. Reduction of investments in the oil and gas sector will be implemented in the form of sales of shares in the amount of $7.5 billion. Refusing to invest in the oil and gas sector is a strategy of Oslo. The decision affects oil companies engaged in exploration of new fields. NOVATEK is developing new fields on the YAMAL. Norway will sell shares of this company. The price will plummet this week. A great chance to make a bear trend!


Trading recommendation: Sell 1073 and take profit 1040.


The Norwegian Fund sells Novatek


#Lukoil:


Over the past two months, LUKOIL's shares have grown by 15.2%! The uptrend is gaining strength! Free cash flow has more than doubled and also reached a historic record. Its value amounted to 8,7 billion dollars. The company has efficient oil refineries. The output of light oil products is 70%. The world average is 65%. The unit production costs decreased by 2% in 2018. Capital expenditures decreased by 12% in 2018. This factor will increase dividend payments. The growth of dividend payments always has a positive impact on the company's capitalization.


Trading recommendation: Buy 5580 and take profit 5690.

 

David Johnson
Analyst of «FreshForex» company
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