Shares in oil companies are set to rise – Goldman Sachs

Goldman Sachs analysts said in a note published earlier this week, the shares in oil companies are set to rise, as long-term oil prices are seen at $ 50-55/ barrel.

Key Quotes (via The Street):

"The headwinds for the equities have now largely played out: energy has been the worst performing sector in MSCI World, with relative performance of energy equities in the US & Europe lagging their normal relationship with the oil price" 

“We...prefer shale-scale winners with good track records of execution: EOG continues to stand out among the large caps, with FANG and RSPP preferred from our mid-cap coverage” 

Referring to the European majors, "Risk-reward is therefore skewed to the upside in our view, with strong 3Q results, capex cuts and scrip removal the main catalysts."