Tag Archives: Oil spill

Another BP CDS Blowout Today?

Reports stemming from the presidential commission investigating the Gulf of Mexico oil spill indicate that Halliburton and BP were aware of flaws in the cement used to seal the well’s bottom. Halliburton’s CDS spreads started to move  Thursday – what will happen on Friday?

“The distribution of the burden, unlike hardened cement, is still fluid.”

Otis Casey



Halliburton and BP may have been aware of flaws in the cement used to seal the well’s bottom, according to an official report.  CDS on Halliburton started out moderately wider on the headlines, but is currently about 38 bps wider than yesterday’s close. Anadarko and Transocean are essentially unchanged. But this can change quickly.

The market’s reaction on BP CDS will come in Friday’s London session

“Whether the report constitutes a ‘smoking gun’ or not remains to be seen, but it has that potential. Litigation risk is high even if the total amount is uncertain. The distribution of the burden, unlike hardened cement, is still fluid,” vice president Otis Casey at Markit writes in a comment.

(www.markit.com)

.

Back in May, it was  the Transocean CDS that got the biggest kick.

(www.cma.com)

 

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BP's Oily Aftermath – Colbert Style

One last segment from the Colbert Report, Colbert is making jokes at BP‘s expense, and with a great follow-on interview with Michael Blum, an environmental scientist from Tulane.  Interesting mixed with a message about tainted shrimp…

“Our inspectors are so good they can find shrimp taint by smell.”

Stephan Colbert

Notice at the one-minute mark, the weaselly news-reader’s description of the BP spill — “when oil began seeping” into the Gulf. Seeping? BP could have written that manipulative phrasing.

I’m impressed that Colbert is able to fit so much factual information into segments that are also funny and ironic.

If you want to see masterful PR manipulation, by the way, notice the new BP ads (no link, but they’re turning up as intros to MSNBC online vids).

Pristine waters, happy citizens, a cohort of rested and ready-to-restart BP beach cleaners; and one core message:

“Now that the oil is gone from the beaches, we’ve done our job. And if oil ever returns to the beaches, we’ll be back just that fast to clean it up again.”

And all that clean water in the background. The words may say “beaches,” but the pictures say “all outdoors.”

Can you smell the manipulation? Smells like that oil “taint,” Colbert joked about.

Vodpod videos no longer available.

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Fears Of Oil Spill Consequences Subside, CDS Spreads Show

EU To Seek Temporary Ban On Deep-Water Oil Permits

BP Rules Out Issuing New Shares

Response To The BP Derivatives Story

So, You Thought BP Was An OIL Company?

Dockwise To Assist BP In Gulf Oil Spill Clean Up

Gulf Oil Spill: A Carefully Planned Inside Job?

Norway’s Oil Fund Among BP’s Largest Shareholders As Bankruptcy Rumors Hit Market

Oil Spill Makes Waves

BP Is Drowning In Its Own Oil Spill

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Filed under International Econnomic Politics, National Economic Politics

Fears Of Oil Spill Consequences Subside, CDS Spreads Show

Fears over the Gulf oil spill appear to have subsided for now as tighter oil and gas credit default swap (CDS) spreads show, according to Fitch Solutions in its latest weekly Risk and Performance Monitor (RPM).

Credit markets have stopped pricing in additional risk for the oil and gas industry for the time being.”

Jonathan Di Giambattista


Oil & gas companies led a 1.4% overall tightening of global CDS spreads, with spreads coming in 3.4%, more than for any other industry, according to Fitch Solutions.

“Credit markets have stopped pricing in additional risk for the oil and gas industry for the time being,” says Author and Managing Director Jonathan Di Giambattista.

Elsewhere, sovereign CDS spreads outpaced the broader market movement, with the Republic of Peru CDS tightening over 50%.

The “Fitch Risk and Performance Monitor”, which is published on a weekly basis, is available at http://www.fitchsolutions.com.

Related Research: Fitch Risk and Performance Monitor

Related by the Econotwist:

EU To Seek Temporary Ban On Deep-Water Oil Permits

BP Rules Out Issuing New Shares

So, You Thought BP Was An OIL Company?

Response To The BP Derivatives Story

Dockwise To Assist BP In Gulf Oil Spill Clean Up

Gulf Oil Spill: A Carefully Planned Inside Job?

Norway’s Oil Fund Among BP’s Largest Shareholders As Bankruptcy Rumors Hit Market

Oil Spill Makes Waves

BP Is Drowning In Its Own Oil Spill

*

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2 Comments

Filed under International Econnomic Politics, National Economic Politics