This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Exxon, Chevron and BP 'Moral High Ground' on Russia Crushed by Downed Plane

Stocks in this article: XOMCVXBP

NEW YORK (TheStreet) -- The Malaysia Airlines disaster last week crushed oil companies' moral high ground to do business with Russia.

U.S. intelligence said Russia is responsible for "creating the conditions" that led to the downed passenger flight, putting U.S. oil companies in a precarious spot as Western actors prepare to possibly levy more economic sanctions against the country.


WATCH: More market update videos on TheStreet TV | More videos from Joe Deaux

"It's going to be hard to keep a moral high ground in terms of doing business with Russia," Francisco Blanch, global head of commodities research at Bank of America-Merrill Lynch, said in an interview. "Which means that Russia's long-term supply profile five years down the line is going to look worse than we expected."

Exxon Mobil (XOM), Chevron (CVX) and BP (BP) are among the oil firms with projects in Russia that could be affected if the West levies more serious sanctions.

Violence between Ukraine and separatists escalated this year, concerning global energy actors that Russia may limit key natural gas exports to Europe.

Worry About China, Not Ukraine

Traders Focus on Ukraine, Technicals

These tensions contributed to rising Brent crude oil prices, which Bank of America says will average about $109 a barrel in the second half of 2014. WTI crude oil -- which is a North American crude -- will dip to about $98 per barrel due to increasing supply and an end to the summer driving season, Blanch said.

The Russia and Ukraine conflict also led to calls by some U.S. politicians to lift the 40-year U.S. oil export ban as a remedy if Russia were to cut off supplies to European countries.

Blanch said Congress doesn't have the appetite to lift the ban, but he said that companies and government agencies may find other avenues to work around the ban to export more refined products.

-- Written by Joe Deaux in New York.

>Contact by Email.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,390.52 +195.10 1.13%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,630.7410 +64.6030 1.41%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs