** Bernstein says short-cycle U.S. shale oil production can react to lower crude prices, and expects loss of 1.2 million barrels of oil per day (bopd) over the next year
** "Low price can incent OPEC to step away from its strategy of adding barrels to the market" - brokerage
** Brokerage expects OPEC to take market share as they have declared, forcing inventory builds (and falling price) in 2H25, forcing U.S. horizontal oil rig count down towards 320 which will remove ~1.2 mln bopd from shale oil
Brokerage changes price target on the following companies:
Company | Old PT | New PT | Upside to stock's last close |
APA Corp APA.O | $23 | $22 | 19.4% |
ConocoPhillipsCOP.N | $120 | $115 | 24.2% |
Devon DVN.N | $45 | $43 | 31.5% |
Chevron CVX.N | $168 | $149 | 1% |
Exxon XOM.N | $140 | $129 | 16% |
DiamondBack Energy FANG.O | $200 | $192 | 39.2% |
(Reporting by Katha Kalia in Bengaluru)
((Katha.Kalia@thomsonreuters.com))