- Societe Generale (PA:SOGN) is the latest to throw in the towel on a 2017 crude oil recovery, as it cuts its crude oil price targets and income outlook for the oil companies it covers.
- The firm cuts its 2017 price forecast for Brent crude oil to $50/bbl from $55, as well as 2018 to $50 from $60 and 2019 to $52/bbl from $65, and sector-wide income estimates by 18.4% in 2017, 29% in 2018 and 30.6% for 2019.
- In light of the new forecast and earnings outlook, Societe Generale downgrades BP (LON:BP) (BP) to Hold from Buy, also citing higher relative valuation, lower return on average capital employed, and lower organic free cash flow yield vs. the sector; the firm cuts earnings estimates for BP, Statoil (OL:STL) (STO +1.2%) and Eni (E +0.7%) but maintains Buy ratings for Total (TOT +1.1%) and Royal Dutch Shell (LON:RDSa) (RDS.A, RDS.B).
- ETFs: USO, OIL, UWT, UCO, DWT, SCO, BNO, DBO, DTO, USL, DNO, OLO, SZO, OLEM, OILK, WTIU, OILX, WTID, USOI
- Now read: Royal Dutch Shell - Lower Oil Prices May Slightly Dent Q2 Results
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