That upgrade was based on the dramatic divergence between improving fundamentals and a zealously pessimistic sell-side. While the index has moved sideways since we made the change, our thesis has been reinforced by industry…
Overweight We upgraded the S&P oil & gas refining & marketing index last month all the way from underweight to overweight based on the dramatic divergence between improving fundamentals and a zealously…
Our Commodity & Energy Strategy team believes that Russia’s threat of a market-share war is a feint: A market-share war would damage the Russian economy more than the balance sheets of U.S. shale producers, particularly…
In the announcement, the Trump administration said a coalition with both Saudi Arabia and the United Arab Emirates would ensure that oil markets remain adequately supplied. This means that the current set of waivers extended to…
Highlights The political economy of oil will become even more complicated, following remarks by Russian Finance Minister Anton Siluanov over the weekend, which suggested policymakers there are considering another market-share war to…
Overweight The S&P oil & gas exploration & production (E&P) index received a much needed boost last week when the blockbuster acquisition of Anadarko by Chevron (at a 37% premium to the stock’s previous…
Already, year-to-date the S&P energy sector is the third best performing sector, besting the SPX by over 200bps. More gains are in store, especially given the large dichotomy between the oil price recovery and the relative…
Highlights Portfolio Strategy Yield curve dynamics, higher oil prices, recovering balance sheets, and compelling valuations and technicals all suggest that energy stocks will burst higher in the coming months. Melting medical…
KSA has indicated it sees a need to extend OPEC 2.0’s production-cutting deal into 2H19, when the coalition’s ministers meet in June. Of late, Khalid al-Falih, KSA’s oil minister, is indicating no further cuts…
Highlights OPEC 2.0 will meet in June to decide whether to continue its production cuts into 2H19. Once again, the leaders are sending conflicting signals – KSA is subtly indicating OPEC 2.0’s 1.2mm b/d of production cuts…