Home Money MARKET REPORT: Oil price plunged by more than a quarter as production soars

MARKET REPORT: Oil price plunged by more than a quarter as production soars

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Surplus: A barrel of Brent crude oil, which was trading around $83 today, is expected to fall to $60 by the end of 2025

The price of oil will fall by more than a quarter by the end of next year as production soars, analysts have warned.

A barrel of Brent crude oil, which was trading at around $83 yesterday, is expected to fall to $60 by the end of 2025.

Analysts at investment bank Citi said increased production by the Organization of the Petroleum Exporting Countries and its allies will translate into an additional 2.5 million barrels a day by September.

Citi analyst Max Layton said there was likely to be a “significant surplus” by the end of next year, just days after the International Energy Agency warned there will be an “unprecedented” surplus as demand reaches its peak. peak in 2029 and then decline. .

BP shares fell 1.1 per cent, or 4.90 pence, to 460 pence. while Shell fell 0.8 per cent, or 20.5p, to 2,724p.

Surplus: A barrel of Brent crude oil, which was trading around $83 today, is expected to fall to $60 by the end of 2025

The FTSE 100 fell 0.6 per cent, or 51.81 points, to 8,163.67 and the FTSE 250 fell 1.5 per cent, or 301.45 points, to 20,195.95.

Halma was the most valuable company after the safety equipment maker’s sales rose 10 per cent to a record £2.03bn in the year to the end of March, while profits rose 12 per cent to £424 million. The shares rose 13.4 per cent, or 314 pence, to 2,664 pence.

Fuller’s reported higher annual results as it capitalized on strong food and beverage sales.

Revenue rose 7 per cent to almost £360m in the year to March 30, while profits rose 40 per cent to £14.4m.

Food sales increased 14.5 percent, while beverage sales increased 9.8 percent.

Momentum has continued into the new financial year with group sales rising 4.4 per cent in the 10 weeks to June 8. Shares added 1.1 per cent, or 8p, to 728p.

Government contractor Capita, which collects the BBC license fee and administers London’s congestion charge, raised its medium-term sales target, raising it by 2.7 per cent, or 0.38 pence, to 14.38 pennies.

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Stock Watch – Tracsis

1718325105 280 MARKET REPORT Oil price plunged by more than a quarter

Technology company Tracsis plunged 11.2 per cent, or 100 pence, to 795 pence after saying the transport industry is delaying spending decisions until after the general election.

The company, which analyzes data from the railway sector, expected the United Kingdom to go to the polls in the autumn.

But an early election has affected the last two months of its financial year (June and July) and it expects its annual revenue to fall short of market forecasts.

Car dealer Motorpoint – down 1.8 per cent, or 2.5p, to 140p – laid bare the impact of the “most difficult” year in its history amid falling prices and high rates of interest.

Revenue plunged by a quarter to £1.1bn in the 12 months to the end of March, while its losses rose from £300,000 to £10.4m.

Caroline Waddington will leave UBS to become chief financial officer of wealth manager St James’s Place, replacing Craig Gentle in the second half of this year. St James’s fell 1.9 per cent, or 10p, to 523p.

Trident Royalties will be bought by a company that manages mining royalty assets in Australia for £144 million.

The AIM-listed company accepted Deterra’s offer of 49 pence per share. The offer lifted the shares by 20 per cent, or 8p, to 48p.

Payment services company Paypoint is approaching a key milestone: £100m of profits by the end of March 2026. Its profits rose by a third to £81.3m in the year to the end of March. Paypoint gained 7.2 per cent, or 41p, to 608p.

Security and surveillance company Petards will buy UK-based critical communications provider Affini Technology Group for £2.8 million, if a bank-related condition is met by June 27.

The update came alongside annual results which showed sales fell 13 per cent to £9.4 million in 2023.

It lost £1.2m last year and fell 13.6 per cent, or 1.1p, to 7p.

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