< Back to News

Biggest oil deal since price crash


Markets summary

The Maltese market closed in the red on Monday with the MSE total index ending the session 0.366% lower at 8,081.529 points. The best performer was HSBC Bank Malta plc, by adding 1.05% to close at 0.96, followed by a 1.00% increase of Mapfre Middlesea plc with a closing price of 2.02. The biggest fall was seen from International Hotel Investments plc with a 2.68% drop to 0.545, followed by a 1.75% and 1.03% slide of GO plc and Bank of Valletta plc with a closing price of 3.36 and 0.96 respectively.

Late gains in the technology space pushed European stock market gauges higher, with Italian shares breaking above their June highs alongside gains for German issues. The benchmark Stoxx 600 was 0.75% higher at 375.51, alongside a 0.99% rise for the German Dax to 13,046.92 and a 0.99% gain on the FTSE Mibtel to 20,621.48.

US stocks closed higher on Monday as the potential for further economic stimulus and various novel coronavirus vaccine prospects helped the Nasdaq Composite turn positive for the year. At the close, the Dow Jones Industrial Average was up 0.03% at 26,680.87, while the S&P 500 was 0.84% firmer at 3,251.84 and the Nasdaq Composite rallied 2.51% to 10,767.09.

Chevron to buy Noble for USD 5 billion in stock

Chevron Corp said on Monday it would buy oil and gas producer Noble Energy Inc for about USD 5 billion in stock, the first big energy deal since the coronavirus crisis crushed global fuel demand and sent crude prices to historic lows.

The oil price crash has decimated shares of many energy companies, making them attractive targets for those that have weathered the downturn and have the resources to buy. Chevron ended the first quarter with a cash pile of $8.5 billion after withdrawing a $33 billion bid for Anadarko last year and then being among the first big oil companies to slash spending during the downturn.

The purchase boosts Chevron’s investments in U.S. shale, and gives it Noble’s flagship Leviathan field off the shore of Israel, the largest natural gas field in the eastern Mediterranean.

The deal makes Chevron the first oil major to enter Israel.

This article was issued by Nadiia Grech, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.