Energy sector could brighten – New York Report
THE BATTERED energy sector may begin to brighten a little as companies report second-quarter results, but barring a big increase in the price of oil, the sector will not be able to sustain even current share prices going forward, analysts and investors say.
Oil prices have fallen at a much steeper clip than energy shares in the 13 months since 23 June 2014 – when oil prices hit a nine-month peak – keeping valuations high even as share prices have plunged.
The S&P energy sector has fallen about 30 per cent since then while oil prices have fallen 50 per cent.
In next week’s reports Chevron, Exxon Mobil and Murphy Oil are seen beating consensus estimates while ConocoPhillips, Range Resources and Occidental Petroleum could miss consensus, according to Thomson Reuters data.