Deutsche Bank sees Oil prices rising

25.05.2017 / 19:16

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The energy experts over at Deutsche Bank have issued a warning to the energy sector. While market dynamics support their call that U.S. crude oil prices will manage to climb to $58 a share by March 2018 -- albeit with lots of volatility along the way -- oil-related stocks are a different kettle of fish.

Mark Roberts, head of research and strategy for alternatives, wrote in a note published today that Deutsche Bank “would feel inclined to downgrade:” energy stocks to a Neutral “if OPEC fails to surprise markets” at its meeting on Thursday.

While we see little surprise potential in terms of the length of the production cut, OPEC might agree to expand the cut, which would be taken positively by investors. Otherwise, we fear the sector could lose further momentum in the short term - since our upgrade, the oil price failed to gain traction despite OPEC and some non-OPEC producers‘ production cuts.

Source: Bloomberg Pro Terminal

Jr Trader Alexander Kumanov

Varchev Traders

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Deutsche Bank sees Oil prices rising

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