Worldwide Energy – “Sun Worldwide” – (Oil Majors’ Profits Drop)…

Aug. 3, 2009 - PRLog -- “Sun Worldwide”: The crash in the price of oil since last summer is largely responsible for the sharp declines in profit for oil majors, BP and Royal Dutch Shell.

Bp’s second quarter profits fell 53% on the same period last year whilst Shell’s plunged by 70%.
“Sun Worldwide” analysts, however, believe the trend is unlikely to last given the return of demand from emerging economies in China and India.

The Asian-based firm has an “overweight” rating on the stock of both companies which it considers to be well placed to flourish when the global economy recovers. It has also, in the past, cited undemanding price to earnings ratios as being strong reasons for holding the stocks.

A source close to “Sun Worldwide” suggested that oil would not become easier to find or extract in the months and years ahead and with another 2.4 billion consumers in China and India chasing the limited supply alongside those in developed countries, the price was likely to surge in the next few years.

Weakness in the US dollar was also likely to push the price of a barrel of oil higher over the next few months as America continues to print money at unprecedented rates.

The “Sun Worldwide” source suggested that oil could top $90 a barrel this year and well over $100 next.