Fears of oil demand destruction are overblown - Canaccord Genuity

Advantage Energy

25/08/2022 12:42

** Brokerage Canaccord Genuity begins or resumes coverage of
Canadian energy exploration and production (E&P) companies
    
           Company                Rating         PT
 Freehold Royalties  FRU.TO   buy              C$19.50
 InPlay Oil  IPO.TO           buy              C$6.25
 Lucero Energy  LOU.V         buy              C$1.15
 PrairieSky Royalty  PSK.TO   buy              C$21.75
 Saturn Oil & Gas  SOIL.V     speculative buy  C$7.00
 Surge Energy  SGY.TO         buy              C$15.50
 Topaz Energy  TPZ.TO         buy              C$30.75
 Whitecap Resources  WCP.TO   buy              C$15.50
    
    ** Brokerage says domestic E&P equities have declined an
average of ~18% since early June, tracking crude benchmarks
which fell ~27% as investors fear cen. bank tightening and
demand destruction
    ** However, believes mid- and long-term outlook for E&Ps
remains upbeat as inventories are depleted, demand concerns are
overblown and the U.S.' historic SPR release is coming to an end
this fall
    ** Points to recent OPEC and EIA reports on strong demand
and dwindling inventories  urn:newsml:reuters.com:*:nL1N2ZL1LO  urn:newsml:reuters.com:*:nL1N2ZR05M
    ** Says some headwinds still remain, including recession
fears, bank policy tightening, Chinese economic slowdown and
possible return of Iranian oil (1% of global output) on market

 (Reporting by Ruhi Soni in Bengaluru)
 ((Ruhi.Soni@thomsonreuters.com
Twitter: https://twitter.com/ruhithere))