- The current $60-plus crude oil price may be as good as it gets for oil traders, according to analysts at Moody’s and Bernstein.
- Moody's sees Brent and U.S. West Texas crude range bound at $40-$60/bbl this year, weighed by rising U.S. shale production, declining but still strong global supplies, eroding compliance with OPEC-led output cuts and abundant supplies of natural gas.
- Bernstein analysts largely concur, seeing global inventories building in a seasonal fashion to the start of the year, and predicting worries about OPEC will loom as the driving season gets underway.
- The firm suggests investors focus on Permian quality plays EOG Resources (NYSE:EOG) and Pioneer Natural Resources (NYSE:PXD) as well as Permian-levered value names Anadarko Petroleum (NYSE:APC) and Apache (NYSE:APA).
- Moody’s also predicts a surge in corporate buyouts among E&P companies after the industry focused on smaller deals in 2017.
- ETFs: USO, OIL, UWT, UCO, DWT, SCO, BNO, DBO, DTO, USL, DNO, OLO, SZO, OLEM, WTIU, OILK, OILX, WTID, USOI
- Now read: Apache Vs. ConocoPhillips (NYSE:COP): A Battle Of The Titans
Original article