• 4 minutes China 2019 - Orwell was 35 years out
  • 7 minutes Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 11 minutes Trump will capitulate on the trade war
  • 14 minutes Glory to Hong Kong
  • 3 hours China's Blueprint For Global Power
  • 2 hours Here's your favourite girl, Tom!
  • 2 hours Peaceful demonstration in Hong Kong again thwarted by brutality of police
  • 3 hours Brexit agreement
  • 7 hours Australian Hydroelectric Plant Cost Overruns
  • 5 hours The Problem Is The Economy, Not The Climate
  • 20 hours The Ultimate Heresy: Technology Can't Fix What's Broken
  • 11 hours Yesterday Angela Merkel stopped Trump technology war on China – the moral of the story is do not eavesdrop on ladies with high ethical standards
  • 10 hours IMO 2020:
  • 1 day Idiotic Environmental Predictions
  • 9 mins Nigeria Demands $62B from Oil Majors
  • 3 hours 5 Tweets That Change The World?
  • 2 hours Bloomberg: shale slowing. Third wave of shale coming.
Alt Text

OPEC Chief Hints At Deeper Cuts In December

OPEC Secretary Mohamed Barkindo has…

Alt Text

Oil Slides On Trade War Anxiety

Oil prices dropped on Tuesday…

Alt Text

The Cheapest Oil Ever Sold

If history tells us anything,…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

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

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:




Download The Free Oilprice App Today

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
Download on the App Store Get it on Google Play