Could Shares In BP plc And Royal Dutch Shell Plc Collapse By More Than A Third?!
By Royston Wild – Friday, 29 May, 2015
“In my opinion both stocks are in danger of a severe share price collapse as the oil market outlook becomes ever gloomier.”
Shares across much of the oil sector have received a massive fillip in recent months in line with a recovery in the crude oil price. After the Brent barometer shuttled from $115 per barrel last summer to multi-year lows around $45 in January, a subsequent reduction in the US rig count has underpinned a solid price recovery — indeed, the benchmark was recently trading around the $64 mark.
With investors hoping these measures will represent a sea-change in the oil market’s supply/demand dynamics from next year, shares in oil major BP (LSE: BP) (NYSE: BP.US) have flipped 10% higher since the turn of the year. Investor sentiment in Shell (LSE: RDSB) (NYSE: RDS-B.US) has wavered more recently, however, and the stock is now trading 11% lower from the close of 2014.
The TRUTH will set you FREE.
No comments:
Post a Comment