Oil service companies are very sensitive to the price of a barrel. (© P. Lowry)
The recovery in the price of black gold could make you want to buy shares of oil companies, particularly sensitive to changes in the price of crude oil. However, we recommend caution and we only recommend a purchase. Explanations.
Driven by tensions between Iran and Western countries, oil prices rose 11% in one month, returning to levels at the end of May.
A favorable increase for oil service companies that are more sensitive on the stock market to changes in the price of black gold than an integrated major like total. Since mid-July, the shares Schlumberger, TechnipFMC or CGG have increased by over 15%.
After this sharp recovery, we recommend caution. While the general economic environment is clearly slowing, the upside potential of a barrel seems now limited. And the oil services would be the first to be affected by a reversal.
In this context, only ruby keep our favors. The specialist in the storage and distribution of petroleum products is very insensitive to changes in the price of black gold.
The title still loses 19% of its historic success in May 2018, just before the company multiplies the disappointments. The difficulties encountered at the time seem to have been overcome and the group is gradually regaining investor confidence.
Portzamparc analysts have just raised their recommendation of a degree on value, to "strengthen", believing that the company's upcoming announcements (results
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