Oil service shares plunged on the Oslo Stock Exchange – OBI Online

Oslo Stock Exchange has completed a miserable day, where several oil-related stocks went on a real blow in the wake of falling oil prices.

The main index ended down 2.8 percent to 569.75, while oil services index plunged 6.5 percent.

So far this year, the two indices down respectively 6.6 and 15.3 percent.

turnover was 4.2 billion.

Crude

Brent oil falls Tuesday afternoon 2.6 percent to $ 39.79 a barrel, while the US WTI oil is down 2.9 per cent to 38 , $ 23 a barrel.

in comparison, a barrel of North Sea oil traded at $ 41.63 a barrel when the exchange closed before Easter.

Oil analyst Torbjorn Kjus of DNB Markets says to TDN Finans that the main reason the price decline is the prospect of record high exports from Russia in April.
– Russia has no plans to freeze exports, only the production. Now see the market that exports from Russia in April will be a record. When one begins to question whether the much debated standstill agreement will have nothing to say at all, says Kjus news agency.

He also highlights the statements made by Nigeria on expected production increase as a negative driver oil prices in recent months.

the tacos oil and oil service stocks

index Heavy Statoil tumbled 4.7 percent to 126.40 kroner, while DNO was down 5 , 4 percent.

PGS plunged 11.7 percent, while Prosafe and Deep Sea Supply fell 10-12 percent.

Aker Solutions down despite contract

Aker Solutions followed the market down. It happened despite the fact that it has won a global frame agreement with BP for engineering and project management at the oil company’s subsea fields.

The stock ended down 8.8 percent to 24 million.

Canaccord Genuity downward revision according to TDN Finans price target on Aker Solutions from 33 to 32 million, but reiterates a buy recommendation.

Downturn for Fredriksen shares

John Fredriksen’s tanker company Frontline fell 3.7 percent to 66.90 kroner. The decline came despite reports of higher tanker rates.

Last week downgraded DNB Markets Frontline shares from “buy” to “hold”, and cut while the price target to from 114 to 80 million.

Also Fredriksens rig company Seadrill fell markedly. The closing price sounds at 25.53 million, down 10.1 percent.

The company announced last Wednesday that they extend a contract with Petrobras for rig West Tellus.

The contract extended by 18 months and gives the company a net increase in backlog of 32 million dollars. However, it was reported that Seadrill have to go down on a reduced day rate.

Some bright spots

Some farmed stocks did well. Salmar and Lerøy Seafood spearheaded by plus 0.7-0.8 percent.