Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Dynamic Maximizers®
  • Retirement Compounders®
  • Free Email Signup
  • Dick Young’s Safe America

Does This Signal the Bottom in Oil & Gas Stocks?

December 1, 2020 By Jeremy Jones, CFA

By Thaiview @ Shutterstock.com

In a move reminiscent of Wall Street shutting down their commodities businesses right as one of the greatest commodity booms on record was getting underway, BMO is winding down its U.S. oil and gas investment banking unit. Bloomberg has more on this potential contrary indicator.

Bank of Montreal is winding down its U.S. oil and gas investment banking business and will focus on assets in Canada going forward, becoming the latest financial institution to cut ties with America’s beleaguered shale industry.

BMO said it has made “the financial decision for an orderly wind-down of our non-Canadian investment and corporate banking energy business.” Going forward, the company said by email, its capital markets energy business will be focused on Canada.

The company is eliminating about 50 positions in its investment banking group as part of the exit that was announced to staff on Monday, according to a person with direct knowledge of the situation who asked not to be identified because the information isn’t public. A handful of corporate bankers will manage BMO’s U.S. oil and gas loan book, the person said.

BMO is the latest bank to halt investment banking tied to U.S. oil and gas explorers, which even before the pandemic were facing pressure after years of generating meager returns. The move didn’t appear to be related to ESG concerns plaguing fossil fuel companies. America’s shale industry has been swept up in a wave of consolidation in recent months as the pandemic slashes oil demand, drags down prices and forces low-premium mergers. That follows years of lackadaisical M&A activity in the oil patch.

Read more here.

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • Oil Market Turbulence
  • “Mr. Smart Guy’s” Bullish Signal for Stocks
  • Is There Plenty of Oil?
  • Author
  • Recent Posts
Jeremy Jones, CFA
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Richard C. Young & Co., Ltd. was ranked #10 in CNBC's 2019 Financial Advisor Top 100. Jeremy is also a contributing editor of youngresearch.com.
Latest posts by Jeremy Jones, CFA (see all)
  • What Is the Stock Market’s Link to the Economy? - January 20, 2021
  • Whether Through Audacity or Ignorance, Stock Fundamentals Are Being Ignored - January 19, 2021
  • Jim Simons’s Renaissance Technologies vs. Internet Forum Traders - January 15, 2021

Search Young Research

Most Popular

  • The Fed is Sacrificing Retirees to Save the Banks
  • Dick Young’s Safe America: Chapter 1, Part I
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • Do You Remember When NASDAQ Dropped by 82%?
  • I’ve Been in Richard Young’s Maximizers for Years
  • The Power of a Compound Interest Table
  • The Highest Yielding S&P 500 Stocks
  • Gavekal Chairman: Renewables Bubble is "Stupidest" Ever
  • Don’t Be on Their Radar, Get Out of Debt Now
  • Whether Through Audacity or Ignorance, Stock Fundamentals Are Being Ignored

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Could this Be the Vanguard GNMA Winning Edge?

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

RSS The Latest at Richardcyoung.com

  • This Guy Is America’s New President: Shotgun Joe
  • Progressives Steal White House/Demolish Their Foundation
  • The Route 209 Pennsylvania Presidential Election Mystery.
  • A President Speaks: “Hard Work Never Killed Anybody”
  • Trump Clobbers Biden In Pennsylvania, Day #2
  • VIDEO: Joe Biden, “Buy a Shotgun,” the Remix
  • Pennsylvania – Trump Buries Biden Day #3
  • Biden Seeks to Expand Inefficient and Unsafe Transport of Oil by Rail
  • Shotgun Joe Biden: Crackin’ Up
  • The Recklessness of Arnold Schwarzenegger

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Social Media

  • Facebook
  • Twitter
  • Youtube
  • Pinterest

Copyright © 2021 | Terms & Conditions

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.