• 2 hours LNG Glut To Continue Into 2020s, IEA Says
  • 4 hours Oil Nears $52 With Record OPEC Deal Compliance
  • 7 hours Saudi Aramco CEO Affirms IPO On Track For H2 2018
  • 9 hours Canadia Ltd. Returns To Sudan For First Time Since Oil Price Crash
  • 10 hours Syrian Rebel Group Takes Over Oil Field From IS
  • 3 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 3 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 3 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 3 days Schlumberger Warns Of Moderating Investment In North America
  • 3 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 3 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 3 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 3 days New Video Game Targets Oil Infrastructure
  • 3 days Shell Restarts Bonny Light Exports
  • 3 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 4 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 4 days British Utility Companies Brace For Major Reforms
  • 4 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 4 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 4 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 4 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 4 days Rosneft Signs $400M Deal With Kurdistan
  • 4 days Kinder Morgan Warns About Trans Mountain Delays
  • 5 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 5 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 5 days Russia, Saudis Team Up To Boost Fracking Tech
  • 5 days Conflicting News Spurs Doubt On Aramco IPO
  • 5 days Exxon Starts Production At New Refinery In Texas
  • 5 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 6 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 6 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 6 days China To Take 5% Of Rosneft’s Output In New Deal
  • 6 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 6 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 6 days VW Fails To Secure Critical Commodity For EVs
  • 6 days Enbridge Pipeline Expansion Finally Approved
  • 6 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 6 days OPEC Oil Deal Compliance Falls To 86%
  • 7 days U.S. Oil Production To Increase in November As Rig Count Falls

Breaking News:

LNG Glut To Continue Into 2020s, IEA Says

Alt Text

UK Oil And Gas Costs To Rise 100% If Brexit Fails

Brexit negotiators’ failure to secure…

Alt Text

Goldman Sachs: Inventory Drawdowns Will Not Continue

Goldman Sachs has reported that…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Goldman: Expect Oil Stocks To Catch Up With Rising Oil Prices

GS

Shares in oil companies have underperformed the recent oil price rally, so some of those stocks are set to rise in a long-term oil price of $50-55, according to Goldman Sachs.  

“The headwinds for the equities have now largely played out: energy has been the worst performing sector in MSCI World, with relative performance of energy equities in the US & Europe lagging their normal relationship with the oil price,” Goldman Sachs analysts said in a note on Monday, as carried by The Street.

In the third quarter, Brent prices rose by some 20 percent to post their strongest Q3 performance since 2004, while WTI prices saw their strongest Q3 in 10 years. Also last month, oil prices returned to a bull market after having increased more than 20 percent from the lows in June.

Oil companies’ shares, on the other hand, have lagged the performance of oil prices in recent months, and therefore have room to rise, according to Goldman.

Among U.S. producers, Goldman’s top pick is RSP Permian (NYSE:RSPP), to which the analysts have assigned a 12-month price target of US$44, which is a 27-percent upside potential compared to Friday’s closing price at US$34.59.

The 12-month price targets that Goldman has on EOG Resources (NYSE:EOG) and Diamondback Energy (NASDAQ:FANG) are each 14 percent higher than their current share prices. Chevron (NYSE:CVX) has a 12-month price target of US$123 with Goldman Sachs, compared to Chevron’s Friday closing price of US$117.50.

“We...prefer shale-scale winners with good track records of execution: EOG continues to stand out among the large caps, with FANG and RSPP preferred from our mid-cap coverage,” The Street quoted Goldman as saying. Related: Sustainability Or Growth? E&Ps Face A Difficult Decision

Goldman Sachs has also recently turned bullish on European majors and on Big Oil’s competitive positioning.

Referring to the European majors, Goldman said, as quoted by The Street:

“Risk-reward is therefore skewed to the upside in our view, with strong 3Q results, capex cuts and scrip removal the main catalysts.”     

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment
  • Mike on October 02 2017 said:
    Iran tanks sent to fight Kurds who hold oil land. There's your war.
  • Mkschro on October 02 2017 said:
    Beware of Goldman Sachs making Buy recommendations on shale oil companies at the same moment Jim Chanos has announced he is shorting shale due to their 1) accounting practices, 2) high CAPEX load, and 3) lack of cash to service debt going forward. It suggests GS may be reducing their own shale oil exposure.
  • Clyde Boyd on October 03 2017 said:
    The glut is not only still here but it will soon get larger as Libya adds 1m bbl a day and winter sets in with no driving. Oil price mags love to boost traders speculation. They will lose. Prices are going to go down again!

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News