• 2 hours EIA Weekly Inventory Data Due Wednesday, Despite Govt. Shutdown
  • 6 hours Oklahoma Rig Explodes, Leaving Five Missing
  • 8 hours Lloyd’s Sees No Room For Coal In New Investment Strategy
  • 11 hours Gunmen Kidnap Nigerian Oil Workers In Oil-Rich Delta Area
  • 13 hours Libya’s NOC Restarts Oil Fields
  • 14 hours US Orion To Develop Gas Field In Iraq
  • 3 days U.S. On Track To Unseat Saudi Arabia As No.2 Oil Producer In the World
  • 3 days Senior Interior Dept. Official Says Florida Still On Trump’s Draft Drilling Plan
  • 3 days Schlumberger Optimistic In 2018 For Oilfield Services Businesses
  • 3 days Only 1/3 Of Oil Patch Jobs To Return To Canada After Downturn Ends
  • 3 days Statoil, YPF Finalize Joint Vaca Muerta Development Deal
  • 4 days TransCanada Boasts Long-Term Commitments For Keystone XL
  • 4 days Nigeria Files Suit Against JP Morgan Over Oil Field Sale
  • 4 days Chinese Oil Ships Found Violating UN Sanctions On North Korea
  • 4 days Oil Slick From Iranian Tanker Explosion Is Now The Size Of Paris
  • 4 days Nigeria Approves Petroleum Industry Bill After 17 Long Years
  • 4 days Venezuelan Output Drops To 28-Year Low In 2017
  • 4 days OPEC Revises Up Non-OPEC Production Estimates For 2018
  • 5 days Iraq Ready To Sign Deal With BP For Kirkuk Fields
  • 5 days Kinder Morgan Delays Trans Mountain Launch Again
  • 5 days Shell Inks Another Solar Deal
  • 5 days API Reports Seventh Large Crude Draw In Seven Weeks
  • 5 days Maduro’s Advisors Recommend Selling Petro At Steep 60% Discount
  • 5 days EIA: Shale Oil Output To Rise By 1.8 Million Bpd Through Q1 2019
  • 5 days IEA: Don’t Expect Much Oil From Arctic National Wildlife Refuge Before 2030
  • 5 days Minister Says Norway Must Prepare For Arctic Oil Race With Russia
  • 5 days Eight Years Late—UK Hinkley Point C To Be In Service By 2025
  • 6 days Sunk Iranian Oil Tanker Leave Behind Two Slicks
  • 6 days Saudi Arabia Shuns UBS, BofA As Aramco IPO Coordinators
  • 6 days WCS-WTI Spread Narrows As Exports-By-Rail Pick Up
  • 6 days Norway Grants Record 75 New Offshore Exploration Leases
  • 6 days China’s Growing Appetite For Renewables
  • 6 days Chevron To Resume Drilling In Kurdistan
  • 6 days India Boosts Oil, Gas Resource Estimate Ahead Of Bidding Round
  • 7 days India’s Reliance Boosts Export Refinery Capacity By 30%
  • 7 days Nigeria Among Worst Performers In Electricity Supply
  • 7 days ELN Attacks Another Colombian Pipeline As Ceasefire Ceases
  • 7 days Shell Buys 43.8% Stake In Silicon Ranch Solar
  • 7 days Saudis To Award Nuclear Power Contracts In December
  • 7 days Shell Approves Its First North Sea Oil Project In Six Years
Alt Text

The World’s Most Expensive Oil

There are hundreds of oil…

Alt Text

What’s The Limit For Permian Oil Production?

The Permian, dubbed as the…

Alt Text

Is The Current Oil Price Rally A “Head Fake?”

Oil prices have experienced a…

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