Last night, Goldman declared the commodity decline over, and put an ambitious, $130/barrel price target on oil over the coming year.So, how should you play this move?
Here’s Goldman’s Arjun N. Murti:
Thematically, we (1) continue to recommend a beta “barbell” framework (XOM and OXY balance high-beta favourites); (2) remain bullish Canadian oil sands equities given higher oil prices (CVE and SU favoured); (3) prefer visible resource and production growth (OXY, OGX, CVE, and SU our favourites), (4) believe sum-of- the-parts realisation stories will remain in focus (CVI and MRO favourites), and (5) are cyclically constructive Mid-Continent refining (CVI and MRO favoured).
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