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Sector IQ: Energy, Issue 3 - Waiting for the Spring: Where Will Oil Prices Go? Has Oil Reached a Bottom? Will Prices Spring Back?

Sector IQ: Energy, Issue 3 - February 2015

Waiting for the Spring: Where Will Oil Prices Go? Has Oil Reached a Bottom? Will Prices Spring Back?

The most prolonged price drop in oil's history, accompanied by the second-largest price decline, has captivated investors' attention and headlines. In this issue of the Sector IQ, we explore the implications of the dramatic drop in oil prices and its impact on the energy sector across equities, fixed income, credit, and new deal issuance.

Our analysis begins by contextualizing the current oil experience to better understand what companies and countries may be most affected. We observe that despite the low prices, several trends suggest an increase in oil production in 2015. We also explore which investment strategies may perform favorably in declining price scenario and how investors might position themselves for a rebound.

Falling oil prices not only affect firm profits but also their credit worthiness and issuers that have utilized debt are being rapidly repriced. In addition, we delve into the credit market implications and the potential effect on energy M&A activity. 

Issue Headlines:

  • When Will Oil Prices Bounce Back?
  • Oil's Drop Was Several Years In The Making
  • Difficult Operating Environment For Energy Stocks
  • Got Time? Buy Energy
  • Upstream Equity Hit The Hardest
  • Markets Reprice Drastically
  • A Near Miss? Scottish Energy Sector Pushes Rick Levels Higher
  • Credit Implications For Companies In The Oil Patch
  • Upstream Deal Value Jumps On Mega Deal
  • Energy Industry In Recession, Says High-Yield Market?

You can read the rest of the Sector IQ: Energy, Issue 3 here 

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