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Goldman Sachs Lowers Oil Forecast, Downgrades Oil Names Across The Board

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The decline in crude oil prices will continue, at least according to analysts at Goldman Sachs.

On Monday, Jeffrey Currie lowered his oil price forecast while stating that supply growth from non-OPEC nations such as Brazil and Azerbaijan will prove to be greater than what is currently demanded across the world.

Shares of oil related companies are expected to follow oil's decline as well, according to Currie, who downgraded many names across the oil sector on Monday.

Currie placed a $75 per barrel target for WTI crude.

Oil has declined sharply in recent weeks on various news headlines. The United States is producing oil at rates it hasn't seen in three decades, while Russia's output is reaching near post-Soviet records. At the same time, OPEC is losing its influence, according to Currie who notes that the oil producing consortium may no longer be a "first-mover swing producer."

OPEC member nations will meet in Vienna next month while the U.S. Energy Department continues to evaluate how a move to lift a ban on domestic crude exports will affect fuel prices.

Downgrades Across The Board

Anadarko Petroleum (NYSE: APC) was downgraded to Neutral from Buy with a price target lowered to $102 from a previous $120.

Basic Energy Services (NYSE: BAS) was downgrade to Sell from Buy with a price target lowered to $12 from a previous $33.

Continental Resources (NYSE: CLR) was downgraded to Neutral from Buy with a price target lowered to $63 from a previous $84.

DCP Midstream Partners (NYSE: DPM) was downgraded to Neutral from Buy with a price target lowered to $57 from a previous $59.

Emerge Energy (NYSE: EMES) was downgraded to Neutral from Buy with a price target lowered to $97 from a previous $153.

Enduro Royalty Trust (NYSE: NDRO) was downgraded to Neutral from Buy with a price target lowered to $10 from a previous $15.

EP Energy (NYSE: EPE) was downgraded to Neutral from Buy with a price target lowered to $16 from a previous $24.

Halliburton (NYSE: HAL) was removed from the ‘Conviction List' and are Buy rated with a price target lowered to $65 from a previous $87.

Laredo Petroleum Holdings (NYSE: LPI) was downgraded to Sell from Neutral with a price target lowered to $16.50 from a previous $29.

Midcoast Energy Partners (NYSE: MEP) was downgraded to Neutral from Buy with a price target lowered to $22 from a previous $25.

Parsley Energy (NYSE: PE) was downgraded to Sell from Neutral with a price target lowered to $15.50 from a previous $25.

Pioneer Energy (NYSE: PES) was downgraded to Neutral from Buy with a price target lowered to $12.50 from a previous $20.50.

Patterson-UTI Energy (NASDAQ: PTEN) was downgraded to Neutral from Buy with a price target lowered to $26 from a previous $43.

Targa Resources Partners (NYSE: NGLS) was upgraded to Buy from Neutral with an unchanged $76 price target.

ONEOK, Inc. (NYSE: OKE) was downgraded to Neutral from Buy with a price target lowered to $68 from a previous $70.

Latest Ratings for APC

DateFirmActionFromTo
Dec 2016Stifel NicolausUpgradesHoldBuy
Nov 2016GuggenheimUpgradesNeutralBuy
Nov 2016Credit SuisseUpgradesNeutralOutperform

View More Analyst Ratings for APC
View the Latest Analyst Ratings

Posted-In: Crude Oil Jeffery Currie OilAnalyst Color News Downgrades Price Target Analyst Ratings

 

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