Energy & Utilities Roundup: Market Talk

Group 1: Oil Market Overview - Crude futures ended a pre-Christmas session with little change, supported by U.S. actions to contain Venezuela's oil trade and ongoing Russia-Ukraine tensions, which counterbalance views of oversupply [2] - WTI crude slipped 3 cents to $58.35 per barrel, while Brent crude ended down 0.2% at $62.24 per barrel [2] - Oil futures extended gains in early U.S. trade due to geopolitical risks surrounding Venezuela and the Russia-Ukraine peace efforts, with WTI up 0.2% at $58.52 per barrel and Brent up 0.1% to $62.44 [3] Group 2: BP's Business Developments - BP's sale of a 65% stake in its Castrol lubricants business for $8 billion is viewed positively, aligning with expectations and reinforcing BP's strategic reset under new CEO Meg O'Neill [3] - The deal allows BP to retain a joint venture with Stonepeak and includes an option to sell the remaining stake after a two-year lockup period [3] - RBC analysts expressed concerns that the sale could negatively impact long-term dividend sustainability and earnings quality, suggesting that cutting buybacks or divesting upstream assets would have been better long-term strategies [3]