Resource

Certainly down, but is it out?

  • Sectors : Resource
  • Companies : Barryroe Offshore Energy | Lansdowne Oil & Gas | Aminex | Cairn Energy plc | Tullow Oil | Petroneft | Premier Oil

Ratings

Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
Aminex OUTPERFORM 05/08/16 Neutral 28/03/13 0.8p
Cairn Energy plc OUTPERFORM 05/12/16 Neutral 24/03/14 115.3p
Lansdowne Oil & Gas OUTPERFORM 03/05/12 N/A N/A 0.7p
Petroneft OUTPERFORM 18/12/09 Neutral 30/06/09 0.6p
Premier Oil NEUTRAL 20/06/14 Outperform 03/04/12 28.2p
Barryroe Offshore Energy OUTPERFORM 09/06/11 N/A N/A 3.1p
Tullow Oil OUTPERFORM 15/01/20 Under Review 09/12/19 24.9p

DAVY VIEW

A one-two combination of energy greening and COVID-19 has created the toughest conditions for the oil market in a very long time. There is a sense that it’s all over for the commodity. When short-term demand falls by 20-30%, these assumptions are easy to make. While we agree it is clearly a sunset industry with huge short-term demand issues, what is being missed is the scale of the supply side response to these very issues. Recent data indicate a sharp voluntary (and also forced) reduction in supply. The scale of this response is unusual and has the capacity to surprise markets towards the end of the year when demand picks up. So far, this is not fully reflected in pricing.

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May 20 2020, 10:45 IST/BST

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