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Posted On: 07/17/2018 4:34:42 PM
Post# of 27084
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Brent oil could re-test $80/bbl later this fall, Goldman analyst says
Brent crude oil has slumped to ~$72/bbl in recent days, the lowest point since early April, but Goldman Sachs analyst Damien Courvalin thinks Brent could touch the $80s again later this fall.
"Ultimately, global inventories are low, oil demand remains robust and we still expect a deficit once U.S. secondary sanctions are reintroduced. As a result, we still expect Brent prices to retest $80/bbl, although U.S. oil policies may leave this occurring late this year rather than this summer as we previously expected," Courvalin writes.
Courvalin attributes the weakness in Brent time spreads to stranded North Sea barrels as a result of a rise in U.S. exports and a slowdown in Chinese imports, not because inventory is starting to bloat again.
Another Goldman analyst, Brian Singer, expects Cabot Oil & Gas (COG +0.1%) to report strong production results, better operating margins in H2 of this year and potential for more share buybacks on top of its ongoing 30M-share buyback plan; he also sees the potential for EOG Resources (EOG -0.3%) to raise its dividend with Q2 or Q3 earnings results.
Brent oil could re-test $80/bbl later this fall, Goldman analyst says
Brent crude oil has slumped to ~$72/bbl in recent days, the lowest point since early April, but Goldman Sachs analyst Damien Courvalin thinks Brent could touch the $80s again later this fall.
"Ultimately, global inventories are low, oil demand remains robust and we still expect a deficit once U.S. secondary sanctions are reintroduced. As a result, we still expect Brent prices to retest $80/bbl, although U.S. oil policies may leave this occurring late this year rather than this summer as we previously expected," Courvalin writes.
Courvalin attributes the weakness in Brent time spreads to stranded North Sea barrels as a result of a rise in U.S. exports and a slowdown in Chinese imports, not because inventory is starting to bloat again.
Another Goldman analyst, Brian Singer, expects Cabot Oil & Gas (COG +0.1%) to report strong production results, better operating margins in H2 of this year and potential for more share buybacks on top of its ongoing 30M-share buyback plan; he also sees the potential for EOG Resources (EOG -0.3%) to raise its dividend with Q2 or Q3 earnings results.
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