Buffett increased his purchase of western oil within a week. He said that after carefully reading the minutes of the fourth quarter earnings conference call of Western oil companies, he believed that the CEO was running the company in the right way. Therefore, he bought as much as possible from the end of February and sold $4.5 billion in five trading days.
Prior to this, Buffett's Berkshire already held western oil preferred shares worth $654.38+0 billion and warrants for 83.9 million common shares at an exercise price of $5962 per share. If the share prices of western oil companies are higher than this level, Berkshire can exercise its warrants and sell these shares at a profit.
For western petroleum, its excellent management ability enables it to withstand these great changes in the external environment. Since 20021,thanks to the relatively stable upward trend of oil prices and good operating ability, the company's financial situation has been continuously improved, especially the operating cash flow has increased significantly.
Although Russia's crude oil exports are not directly sanctioned, other sanctions, especially those excluded from the SWIFT system, make Russia's global crude oil supply uncertain. We should also pay attention to the steady growth of OPEC+and Iranian crude oil production. Stimulated by the surge in international oil prices and Buffett's sweeping of goods, the share prices of western oil companies rose continuously, reaching 45% in the first week of March, the largest weekly increase in recent years, with an annual increase of nearly 100%, and the latest closing price rose to $57.95.
After Buffett's successive moves to chase up western oil, the market is reading the signal behind it: will international oil prices continue to soar in the future? Affected by the escalation of the conflict between Russia and Ukraine, international oil prices soared to the highest level since 2008.
After the United States and Britain joined forces to "block" Russian crude oil exports, the international market raised concerns about the future oil price supply. Some institutions believe that there may be room for a sharp rise in international oil prices. In view of Russia's central role in global energy supply, the global economy may soon face one of the biggest energy supply shocks in history. In addition, it is difficult to find enough crude oil supply to make up the gap in the short term, and it is expected that crude oil prices and oil companies' share prices will continue to fluctuate greatly.
As a major energy supplier in the world, once Russia has problems, Qatar, Saudi Arabia and other energy suppliers will find it difficult to make up for the supply gap, which may further worsen the market supply. The EU does not want to impose sanctions on any Russian energy exports, because they rely on Russia in this respect. The United States has not yet decided whether to ban the import of oil and natural gas from Russia, but Russia's oil supply will affect the oil prices in the United States and the world.