B of A Equity Research has increased their long-term oil price for price targets from $55 to $60
Updated price targets for the Sweet 16 they cover
CLR + 6 to $33
DVN + 6 to $36
EOG + 4 to $84
PXD + 35 to $192
XEC + 11 to $70
BofA Increased Price targets - Mar 16
BofA Increased Price targets - Mar 16
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: BofA Increased Price targets - Mar 16
BofA adopts $60 l/term Brent as base case (from $55)
15 March 2021
We continue to believe the backdrop for the global oil sector has changed. At the simplest level we see the disruption from US shale that destroyed confidence in the commodity cycle and value proposition of US E&P’s replaced by a reset in business models that can reengage the sustained intervention policy by OPEC+ that stabilized oil markets between 2017-19. With this backdrop, the question we pose is simply that if Saudi was prepared to defend oil above $60 (Brent) while ceding market share to US E&P’s, at what level should we expect it to support oil markets under a more restrained US production outlook? The answer may be subjective; but it’s not complicated. With our global commodity & equity teams, BofA adopts $60 as our long term base case.
15 March 2021
We continue to believe the backdrop for the global oil sector has changed. At the simplest level we see the disruption from US shale that destroyed confidence in the commodity cycle and value proposition of US E&P’s replaced by a reset in business models that can reengage the sustained intervention policy by OPEC+ that stabilized oil markets between 2017-19. With this backdrop, the question we pose is simply that if Saudi was prepared to defend oil above $60 (Brent) while ceding market share to US E&P’s, at what level should we expect it to support oil markets under a more restrained US production outlook? The answer may be subjective; but it’s not complicated. With our global commodity & equity teams, BofA adopts $60 as our long term base case.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group