Could this be oil’s year?

  • Sectors : Resource
  • Companies : Cairn Energy plc | Kenmare | Tullow Oil | Premier Oil


Ratings and price correct at time of issue

Company Rating Date Previous Rating Date Closing Price
Kenmare OUTPERFORM 03/08/16 Under Review 07/12/15 347p
Premier Oil NEUTRAL 20/06/14 Outperform 03/04/12 94.2p
Tullow Oil OUTPERFORM 30/06/09 N/A N/A 254p
Cairn Energy plc OUTPERFORM 05/12/16 Neutral 24/03/14 282p


The late 2016 OPEC deal pulled the oil price out of the doldrums in 2017. At the same time, economic recovery provided the demand to shift metal prices from their early 2016 funk. Since their respective troughs, metal stocks have performed reasonably well but oil-related stocks have underwhelmed. Could 2018 be oil’s turn? For now, we feel the oil price may settle in the low $60/barrel range but, helped by on-going self-help such as free cash flow resurgence and falling debt, oil and gas stocks could finally rediscover a degree of vitality. Our preferred picks in the sector are Tullow Oil and Cairn Energy

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Dec 14 2017, 08:00 GMT