Goldman Sachs raises oil services
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Goldman Sachs upgraded the European oil services subsector to "attractive" from "neutral" but reversed its action on the European exploration and production sector on valuation.
"We remain bullish on the oil price and believe that the (oil) services sector is the most attractive way to gain exposure to this," Goldman said, and suggested a switch into the oil services sector from the E&P sector.
The structural decline in non-Opec supply will accelerate over the next five years unless the oil industry starts to bring forward the development of its major new fields, which would benefit oil services players, Reuters quoted Goldman as saying.
Goldman said it estimates an average oil price of $80 per barrel in 2010, $100 per barrel in 2011 and $105 per barrel in 2012.
"While we recognise that both services and E&P firms have strong leverage to the oil price, the services subsector is trading significantly below its historical performance versus the spot oil price and the E&P subsector is trading above the trend line," Goldman said.
It upgraded France's Technip and Norwegian engineering company Aker Solutions ASA to "buy" from "neutral" and added the stocks to its conviction list.
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Monday, 15 June, 2009, 10:05 GMT | last updated: Monday, 15 June, 2009, 10:05 GMT