Total Energies: Oddo says a best pick

(CercleFinance.com) - Oddo points out that the IEA has reduced its demand estimate for 2021 by 50 kb/d and thus anticipates a rebound of 5.
4 mb/d to 96.4 mb/d after a decline of 8.7 mb/d in 2020.

For 2022, the IEA has started to publish its forecasts and expects a further rebound of 3.1 mb/d to 99.5 mb/d, which is its pre-COVID-19 level, and should even exceed it in Q4 2022 at 100.6 mb/d.

The analyst points out that demand is recovering strongly this June - by 2.5 mb/d, followed by 1.2 mb/d in July and 1 mb/d in August.

Total Energies is the most attractive stock in its sector Oddo says.

Analysts confirm their scenario of a Brent price of $60/b in 2021+, albeit with potential upside. After a slight surplus in May, the market should return to equilibrium with OPEC's policy of supporting demand by increasing its volumes, in addition to a possible easing of sanctions on Iran, they say.

The rise in oil prices should enable energy companies to reduce their debt, improve returns to shareholders and accelerate the development of renewables, thus leading to their rerating, the broker adds.

The share is up about 1% at lunchtime on Monday.



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