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Thursday, October 9, 2014

Price fall hastens decline of "big oil" as Western majors retreat, (NYSE: MS), (NYSE: XOM)

This year's fall in energy prices is hastening the decline of big oil, as the seven Western majors sell-off assets, cut investment, return money to shareholders and shrink in size, leaving ever more output to small producers and state firms.Companies that were already deep in the red when the price of Brent was at $109 a barrel last year are having to redraw business plans for prices as low as $90.With promised shareholder dividends probably untouchable for now, they will have to divest, cut costs and borrow more against a smaller business just to make ends meet. And unlike in previous downturns, they are no longer big enough to ensure that their own cutbacks will drive prices and profits back up.According to Morgan Stanley analysts, the seven majors - Royal Dutch Shell, BP, Exxon Mobil, Chevron, Total <TOTF.PA, ENI and Statoil - ran a collective deficit of $55 billion last year.

Morgan Stanley is a global financial services company that, through its subsidiaries and affiliates, provides its products and services to a range of clients and customers, including corporations, governments, financial institutions and individuals. Shares of MS remained unchanged at $34.50. In the past year, the shares have traded as low as $27.02 and as high as $36.44. On average, 9136330 shares of MS exchange hands on a given day and today's volume is recorded at 300.

Exxon Mobil Corporation is a manufacturer and marketer of commodity petrochemicals, including olefins, aromatics, polyethylene and polypropylene plastics and a range of specialty products. Shares of XOM remained unchanged at $94.61. In the past year, the shares have traded as low as $84.79 and as high as $104.76. On average, 9924740 shares of XOM exchange hands on a given day and today's volume is recorded at 2029.



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