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Norway's [huuuge] State Pension Fund to sell O+G holdings

DiamondEcho
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Norway's [huuuge] State Pension Fund to sell O+G holdings

#97455

Postby DiamondEcho » November 21st, 2017, 10:12 am

Came across the below article from last night, thought it might interest those with or considering O+G shares.

'Norway dumps oil stocks – what does it mean?
Norway’s gigantic sovereign wealth fund has just announced its decision to exit all oil and gas stocks. What might this mean for the sector?'
https://www.ig.com/uk/view-ig/2017/11/2 ... ean--40761

Clitheroekid
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Re: Norway's [huuuge] State Pension Fund to sell O+G holdings

#97625

Postby Clitheroekid » November 21st, 2017, 6:30 pm

It seems a bit stupid of them to announce their intentions, and thereby put downward pressure on the price of oil and gas shares. I'd have thought it more sensible just to gradually release them into the market.

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Re: Norway's [huuuge] State Pension Fund to sell O+G holdings

#97658

Postby Spet0789 » November 21st, 2017, 9:14 pm

It’s not quite as simple as that. They are considering changing their benchmark to exclude oil shares. They take transparency very seriously. When you have something near $100k salted away for every man, woman and child in the country you can afford to.

The Boomers spunked our oil money. Then ran up massive debts. And are entitled to final salary pensions. And then gave us Brexit. Thanks guys!

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Re: Norway's [huuuge] State Pesion Fund to sell O+G holdings

#97689

Postby Nimrod103 » November 21st, 2017, 10:59 pm

Clitheroekid wrote:It seems a bit stupid of them to announce their intentions, and thereby put downward pressure on the price of oil and gas shares. I'd have thought it more sensible just to gradually release them into the market.


It does seem a bit like that Gordon Brown sells gold at bottom of market, and tells everyone what he is going to do beforehand moment.
There has been no mention of a sale of the Norwegian state's 67% of Statoil, so they may think that is enough oil exposure for the future.

Perhaps they think investing more money in low cost production in the ME will just undermine their own high cost production, or mayube the controllers of the sovereign wealth fund think that they are so rich and so morally superior that they can afford to avoid some investments cos it makes them feel good.

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Re: Norway's [huuuge] State Pension Fund to sell O+G holdings

#97702

Postby Spet0789 » November 22nd, 2017, 12:25 am

Nimrod103 wrote:
Clitheroekid wrote:It seems a bit stupid of them to announce their intentions, and thereby put downward pressure on the price of oil and gas shares. I'd have thought it more sensible just to gradually release them into the market.


It does seem a bit like that Gordon Brown sells gold at bottom of market, and tells everyone what he is going to do beforehand moment.
There has been no mention of a sale of the Norwegian state's 67% of Statoil, so they may think that is enough oil exposure for the future.

Perhaps they think investing more money in low cost production in the ME will just undermine their own high cost production, or mayube the controllers of the sovereign wealth fund think that they are so rich and so morally superior that they can afford to avoid some investments cos it makes them feel good.


As I understand it, there’s no moral dimension to this potential change. They simply recognise that their inflows are a function of the oil price so doubling down by also owning oil producers makes little sense.


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