Oil markets keep a wary eye on shale producersâ pledge for restraint By Gerson Freitas Jr, Sheela Tobben and Kevin Crowley on 1/28/2021
(Bloomberg) Shale producers swear this time is different.
After years of profligate spending and unchecked output helped trigger a series of oil-price crashes, U.S. explorers say theyâve learned from their mistakes. Theyâve pledged to keep a lid on production, even as crude rebounds amid OPEC supply cuts and the outlook for a recovery from the pandemic-driven global economic collapse.
Convincing the market is another matter, however.
One longtime energy investor sees âzero valueâ in producersâ promises of frugality. Explorersâ discipline wonât last as oil extends a recovery from historic lows to trade at more than $50 a barrel, a level at which many shale wells are profitable, said Charles Lemonides, the founder of Valueworks LLC, which has about $200 million in assets und
Analysts at Wall Street s biggest banks say ExxonMobil is well-placed to gain from this year s recovery in commodity prices.
(Bloomberg) Analysts at Wall Street’s biggest banks say now’s the time to buy Exxon Mobil Corp. as rallying oil and gas prices increase the chances of the company being able to keep its highly prized dividend, the third-highest in the S&P 500 Index.
JPMorgan Chase & Co. on Wednesday joined Morgan Stanley, Goldman Sachs Group Inc. and Well Fargo & Co. in upgrading Exxon to ‘buy’ in recent weeks. Years of underperformance have left the stock trading at low valuations compared with peers, leaving it well-placed to gain from this year’s recovery in commodity prices, they said.
Thanks, but no thanks
Energy companies give the Arctic the cold shoulder
To Donald Trump, Alaska is a promising source of oil wealth and energy security. To energy companies, it is a risk not worth taking
T
O THE GWICH’IN people, the coastal plain of the Arctic National Wildlife Refuge in Alaska is “the sacred place where life begins”. To environmental campaigners, it is a rare habitat that must remain protected, home to caribou, polar bears and migratory birds from six continents. To President Donald Trump, it is a promising source of oil wealth and American energy security. To energy companies, it is a risk not worth taking.
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This year has been a historically brutal one for oil stocks, with a collapse in demand driven by COVID-19 travel restrictions and shutdowns pushing WTI crude oil prices briefly into negative territory for the first time in history.
Yet the oil market has since stabilized, and one analyst said Friday it may finally be time for investors to start dipping their toes in the space in 2021.
The Analysts: Morgan Stanley analysts Devin McDermott and Benny Wong issued rating and price target updates throughout their oil coverage, including the following upgrades:
Diamondback Energy Inc (NYSE: FANG), upgraded from Equal Weight to Overweight, price target raised from $51 to $65.