In a recent interview on Bloomberg Tv, Adam Parker (Chief Executive Equity Advisor at Morgan Stanley) explained that this will be the moment for energy stocks to start going upside again. Moreover also Citigroup last Tuesday advised his clients to buy energy stocks, since it is 5 years that energies have been bearish and their last analysis is the first to be bullish after 4 years.
Even if the oil price continues to trade low, now energy companies have undertaken the necessary behaviours and strategies in order to regain the profitability, which for them is a past duty dating 5 years back. Two main reasons to support that thesis are the cost-cutting and capital discipline which is bringing new flows of money from the secondary markets.
Here you can find the complete list of yesterday’s biggest movers in energy stocks. This is another sign of the fact that the market is ready for a new start.
In addition, the oil war engaged by Middle East Opec Countries is hopefully about to come to an end, as their cash reserves will not be able to support such a low price for such a longer time. One of the goals was to obstruct big oil suppliers such as Russia to stop extracting oil and exiting the market, or at least cause big cash looses for each extracted barrel, which is what is going on now.