RE: TLW29 Apr 2020 10:43
Oil bounces as Goldman starts to see positives in energy sector / Apr. 29, 2020 1:55 AM
Crude oil prices climb (CL1:COM) after a report from the American Petroleum Institute showed a smaller than expected U.S. crude inventory build; WTI for June delivery +14.1% to $14.08/bbl, while Brent +4.1% to $21.31/bbl.
The API data showed U.S. crude inventories rising by nearly 10M barrels in the week to April 24, but that was lower than analyst expectations of a build of 10.6M barrels.
Oil prices yesterday swung between gains and losses as investors continue to watch depleting crude storage space and demand destruction from the coronavirus outbreak.
Energy was the only stock market sector to finish higher last week despite the plunge in WTI crude, and the sector has continued to outperform the broader market so far this week.
Goldman Sachs highlights a number of reasons why it is more positive on energy stocks, saying demand appears to be near a trough, shut-in announcements are becoming material, and valuation is near 25-year lows on EV/gross cash invested.