Galp: Oddo's worst pick

(CercleFinance.com) - Oddo says that in its latest report, the IEA has taken into account the impact of the war in Ukraine and the surge in oil prices and estimates that it should result in a decrease in demand growth of 950 kb/d in 2022.


This growth is expected to be +2.1 mb/d compared to 3.1 mb/d expected the previous month. Demand is thus expected to reach 99.7 mb/d. The impact of soaring oil prices is estimated at around 400 mb/d and that of the economic slowdown at 500 mb/d, with world GDP growth revised downwards from 0.9% to 3.4%, the broker said.

Nearly half of this revision affects demand in Russia, while a third affects OECD countries, compared with 7% for China, Oddo says.

The analyst believes that for the moment, the alternatives to increase production in the short term remain limited to the will of OPEC and / or an easing of sanctions on Iran, the next OPEC meeting of March 31 will be decisive.

Oddo says that the Portuguese energy group Galp is its worst pick in the sector, for which it has a target price of 10 euros (current price: 10.6 euros, +0.8%).


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