Total: Oddo says will be 'less impacted' than competitors
(CercleFinance.com) - Russia has not validated the OPEC+ agreement, taken the previous day, to reduce its quotas by an additional 1.
5 m b/d.
Oddo says that OPEC+ did not even issue an official statement at the end of the meeting and several member states still hope to find an agreement, which seems difficult, although not completely impossible.
The broker says that this discord within OPEC+ will have the opposite effect by starting a war for market share between OPEC+ countries and an increase in supply. It adds that Brent is likely to continue to fall below the threshold of 27 dollars/barrel reached in 2016.
Oddo analysts believes that oil companies will remain under pressure; the broker says that it will adjust its target prices according to the scenario for Brent prices soon.
The most impacted are those with low exposure to Downstream (Galp and Eni) and those with high debt (BP and Shell). The broker believes that Total and Repsol will, to some extent, be less impacted than their competitors. This will have no risk on dividends for Total, although this is not the case for Repsol, it adds.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
5 m b/d.
Oddo says that OPEC+ did not even issue an official statement at the end of the meeting and several member states still hope to find an agreement, which seems difficult, although not completely impossible.
The broker says that this discord within OPEC+ will have the opposite effect by starting a war for market share between OPEC+ countries and an increase in supply. It adds that Brent is likely to continue to fall below the threshold of 27 dollars/barrel reached in 2016.
Oddo analysts believes that oil companies will remain under pressure; the broker says that it will adjust its target prices according to the scenario for Brent prices soon.
The most impacted are those with low exposure to Downstream (Galp and Eni) and those with high debt (BP and Shell). The broker believes that Total and Repsol will, to some extent, be less impacted than their competitors. This will have no risk on dividends for Total, although this is not the case for Repsol, it adds.
Copyright (c) 2020 CercleFinance.com. All rights reserved.