Q: I know it is a milion $ question.
Do you expect the oil/gas stocks swing to negative regardless of oil shortages all based on sentiment?
Do you expect the oil/gas stocks swing to negative regardless of oil shortages all based on sentiment?
5i Research Answer:
Most O&G names have done well this year; we don’t think the gains will be fully reversed. Of course, anything could happen in the market given the volatility of the oil and gas sector, but we think it is highly unlikely, mainly because as long as oil prices remain around the $70–$80 range (which they are well above now), oil and gas companies are expected to generate record cash flow and profitability. Nothing goes up in a straight line, but we think with the current setup for oil & gas looks fine but there will be volatility in the short-term due to the Iran war.