Shares of the British mining company rose in more than a half during last 3 trading days
On Monday, they were among 10 most powerful titles on European stock markets.
Even though oil price didn’t bounce off its current $30 value, there’s a growing optimism on the black oil markets. Owners of Tullow Oil shares, the British mining company, could confirm it, as value of their shares has grown in more than 50% since Friday.
The reason is simple. Based on last week’s discussion, it became clear that an agreement on oil production cuts could be reached among OPEC+ member countries. Such a deal would help oil prices significantly increase. There’s hope that the Saudi Arabia-Russia oil price war could soon end after a month of tensions.
Tullow Oil announced that the company disposes of financial reserves of around $700 billion and aims to continue in costs reduction due to coronavirus pandemic. For this year, the company has planned capital expenditures of $300 billion, that is $50 billion less than it had been originally planned. Some savings were reflected there, too.