Keybanc sees robust recovery in global oil demand in second half of 2021

PDC Energy

17/06/2021 11:01

** Keybanc Capital Markets says global oil demand appears to
be recovering faster than expected, aided by strong increases in
gasoline demand 
    ** Gasoline demand is already above pre-pandemic levels in
the U.S. and China, though it is still lagging in Europe as it
is roughly 18% below pre-pandemic levels- Keybanc
    ** Brokerage says it expects soft COVID-19 restrictions that
Europe still has in place to go away over the next couple of
months, which should unlock more European oil demand by late
summer
    ** Brokerage expects jet fuel demand to improve materially
in 2H21, but will remain a laggard compared to other oil
products due to weaker long-haul flight demand
    ** Expects demand to accelerate into the summer as the kids
are now officially out of school for the summer, which should
accelerate vacation travel for families
    ** Sees a continued robust recovery in global oil demand in
2H21 setting up well for further improvement in 2022
    ** Raises PT of shale producer Continental resources  CLR.N 
to $41 from $39 
    ** Also raises PT for ConocoPhillips  COP.N  to $68 from $65
    ** Raises PT for other oil and gas producers PDC Energy
 PDCE.O , Bonanza Creek Energy  BCEI.N , Magnolia oil & gas Corp
 MGY.N  

 (Reporting by Rithika Krishna in Bengaluru)
 ((Rithika.Krishna@thomsonreuters.com;))