Why Canadian Solar, WebMD, BP, Chevron and Exxon Are Making Headlines

Traders are watching Exxon Mobil Corporation (NYSE:XOM), Chevron Corporation (NYSE:CVX), and BP plc (ADR) (NYSE:BP) after crude futures retreated by around 2.7% on the back of the news that OPEC won’t likely reach a consensus in terms of freezing or cutting production at their informal meeting in Algeria. Although Saudi Arabia has offered to cut around 500,000 barrels per day, and Iraq has also offered to agree to a freeze or to cut if other nations can agree, Iran is again throwing a wrench into OPEC unity by refusing to freeze until its production reaches 4.1-to-4.2 million barrels per day, a demand which is itself up from the previous number of 4 million barrels per day. Given that the country has been under sanctions for a long period of time prior to last year, Iran’s economy is less dependent on oil than Saudi Arabia or Iraq’s economies are.

Still, not all is lost, as OPEC is still expected to convene in November to potentially work on a freeze again. If OPEC and Russia can get their act together, Chevron and BP’s dividend would be safer, and Exxon would have more cash flow to buy back stock or execute other actions.

In terms of hedge fund holdings, our data shows that the number of funds in our system with holdings in BP plc (ADR) (NYSE:BP) rose by six quarter-over-quarter to 40 at the end of June. As for the other two supermajors, 47 funds that we track were long Chevron Corporation (NYSE:CVX) on June 30, while 60 were shareholders of Exxon Mobil Corporation (NYSE:XOM), out of the 749 active hedge funds in our system.

Disclosure: None