Morning Commentary: Pacific Rubiales partnering with Pemex; Ukraine, Russia talks eyed

By Christine Van Dusen

Atlanta, Oct. 17 – Investors on Friday morning were keeping an eye on Colombia-focused Pacific Rubiales Energy Corp., which announced it will jointly explore business opportunities with Mexico’s Petroleos Mexicanos SAB de CV (Pemex).

Pacific Rubiales’ yield curve climbed 4 basis points on the news that the oil and gas company had entered into a three-year agreement with Pemex to discuss and analyze potential oil and gas cooperation in Mexico, a New York-based trader said.

“The [Pacific Rubiales] curve is flying on the news, combined with a nice, healthy dose of short-covering,” he said.

By entering the Mexican energy market, Pacific Rubiales could increase its daily output from 330,000 barrels to 700,000 barrels, according to published reports.

In other news, sovereign bonds from Ukraine remained under pressure amid thin liquidity at the end of the week, said Svitlana Rusakova of Dragon Capital.

“With buyers reluctant to add risk, it seems even minor selling interest can move the market lower,” she said. “The market is awaiting more clarity on the prospects for resolving the conflict in Eastern Ukraine, with today’s Poroshenko-Putin meeting possibly providing some clues.”

The early part of the talks between the presidents of Russia and Ukraine did not bring the countries closer to resolving the crisis, though. Talks were expected to continue on Friday, but market sources did not expect the leaders to be successful in bolstering the ceasefire agreement or solving a gas pipeline dispute.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.