Earlier this year, Gazprom conducted Investor Day to inform the company’s investors about Gazprom’s prospects. The experts expect moderate production volume. They are still positive about the company’s export of natural gas to Europe.
What are the real prospects of the Russian giant? How promising is the company’s stock for investors? Let’s try to answer these questions together with Masterforex-V Academy.
According to experts, the good news is that the mark has already taken into account all the negative factors and scenarios. This is reflected by Gazprom’s multipliers for 2011. The risk of further worsening is minimal. At that point, Gazprom’s stock traded with a 50-75% discount as compared to the multipliers.
3 years ago, the company’s NG production was 4% below the expected level. Gazprom lowered the production forecast for 2011 and 2012 by 5% and 2% correspondingly. According to the new forecast, the production of natural gas will remain the same in 2013.
At the same time, Gazprom is expected to increase the export of natural gas to ex-USSR states while the domestic demand won’t probably change a lot.
The forecast for the export of natural gas to Europe was positive as well. However, the average price of exported gas was 9% below the expected level mainly at the expense higher oil prices (the price of Urals oil is 28% higher year-over-year).
When Will Gazprom’s Stock Stop Its Downtrend?
According to the DFWA Department of Masterforex-V Academy, Gazprom’s stock has been declining for several months in a row. Is there the limit to this downfall? Will the stock see further decline? In order
In order to answer these questions, let’s look at the chart below. The chart clearly indicates 2 tendencies. The 1sttendency is the senior one. It represents a bullish pattern (the blue arrows). The 2nd (junior) pattern represents a downtrend (the red arrows). The overall background is the crisis started in 2008.
The background is currently favoring the downtrend. Still, there has been no 3rd wave in the upward direction so far. However, it is still probable in the near future. However, the upward potential is moderate (140-150 rubles per share) if to consider the fact that the background is negative.
If to consider the junior bearish pattern, wave 3 is currently underway. This means that in the near future we may see Gazprom’s stock declining down to 60-70 rubles per share prior to going in the upward direction.
Crude oil keeps on going down in value. At this point, both WTI and Brent prices have been going down for 3 months in a row. As stated in the previous forecast, crude oil reached $50/b in July, which was followed by a market plunge all the way down to $41/b.
The global market of crude oil keeps on crashing as the U.S. Dollar is going up in value and the global oversupply of crude oil is still growing amid lower demand for it. At the same time, the U.S. crude oil inventories are getting more massive, which is an other bearish factor exerting downward pressure on oil prices.
Gold and Oil Prices Plunge As Chinese Yuan Sees Devaluation
Sensational data coming from China have been affecting financial market so far. Amid the devaluation of the Chinese Yuan, commodities are going down in value as well, including gold and crude oil, Market Leader reports.
In late July – early August, crude oil resumed its downtrend again. In particular, the prices crashed all the way down to January’s lows. The price of a barrel of Brent oil is now fluctuating around $49-$50, which is twice as cheap as 12 months ago.
According to the analysts of KGI Securities, which have been sharing relatively reliable insider information regarding Apple products, now claim that the production of Apple iPhone 6s and Apple iPhone 6s Plus is going to be delayed, the Hi-Tech Department of Market Leader reports.
The never-ending downtrend in the market of crude oil is still underway, Market Leader reports. As the oversupply is going bigger and bigger and the demand for crude oil is still at its lows, crude oil is going down in value. In particular, WTI oil dropped down to $43,27 per barrel at the end of Monday’s trading session.
OPEC Planning Another Emergency Summit As Oil Prices Crash
OPEC doesn’t deny the possibility of holding another emergency summit in the near future. At this point, OPEC members are reported to be discussing the issue. According to Masterforex-V Academy the major reason why OPEC is planning the summit is the fact that oil prices resumed its downtrend while experiencing downward pressure coming from the increasing oversupply of crude oil in the global market.
The never-ending bearish trend in the global market of crude oil is still underway. Yesterday, at the end of the trading day, the price of WTI crude oil declined below $45 per barrel, Masterforex-V Academy reports.
In particular, at the ned of the American trading session, WTI (West Texas Intermediate) saw a 1.7% drop and broke through the $45/b support on its way down to new local lows. The trading day closed at $44,81/b. Masterforex-V Academy reports that this is the lowest price since March 19th, 2015.
Despite the fact that Chinese authorities have been doing their best to save the local stock market from seen an even deeper crash, there efforts have been inefficient and uncoordinated and have failed so far.
Yesterday, on August 4th, the Chinese government held an emergency summit together with the leading financial experts in China. The Prime Minister urged the expert to work out an efficient solution to cap the crash until it is too late. At the same time he insists on tighter cooperation between the People’s Bank of China, the Chinese Ministry of Finance as well as stock market regulators and major banks.
There are several weeks until Apple is going to introduce a new series of mobile devices – iPhone 6s and 6s Plus. That is why more and more web sources keep on posting rumors and sneak pics of the would-be devices.