- Repsol inks multiple deals, including an 80 million euros investment to produce gas from urban waste
- Oil sector is vulnerable again as the number of COVID-19 infections is on the rise worldwide
- Repsol share price closed the week lower for the third week in a row
Shares of Repsol SA (ETR: REP) closed the week over 6% in the red for the third week in a row. The stock price has now pared back gains and it trades almost 3% down in June.
Fundamental analysis: Repsol inks new contracts
Repsol SA, the tenth biggest company in Spain by market capitalization, committed millions of euros for investments in fuel production using green hydrogen. The oil giant plans to produce gas from urban waste.
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The new plants will be based in northern Spain, in Bilbao. It is believed that the project’s capacity to process urban waste will be around 10,000 tons each year. The total value of the investment is 80 million euros.
“Spain must base its decarbonization strategy on its technological and industrial capabilities,” Josu Jon Imaz, Repsol’s CEO, said in the statement.
“The production of green hydrogen in combination with the capture and use of CO2 to produce net zero emission fuels is part of the industrial decarbonization strategy of Repsol.”
Separately, Repsol received a green light from the Norwegian authorities for life extension of the Rev field in the North Sea.
“Repsol has applied to the PSA for consent to extend the life of the field. We have now given Repsol consent to use the facilities at Rev until 31 December 2023,” the Petroleum Safety Authority Norway said.
Technical analysis: Stock slips lower
Repsol share price has recorded the third consecutive week in the red to trade below the key 8.00 mark again. Nearly three weeks ago, shares were trading above the 10.00 handle, albeit briefly.
The latest plunge in oil stocks came after the surge in the number of COVID-19 infections worldwide. Investors are now fearing that the expected recovery will be slower than originally anticipated.
Repsol stock price is now trading below the critical horizontal support near 8.00. The sellers are now likely to push the price action towards the next support at 7.20. Looking long-term, the key support is located at 6.00. To learn how to choose winning stocks, click here.
Shares of Repsol closed the week over 6% lower to trade below 8.00 once again. Despite multiple deals that the oil giant is making, the coronavirus-fueled bearish environment is making life difficult for the oil sector.