Updating the oil sector in Europe
Inbound 08.09.2009 08:48

We have included a review of the European oil sector. In the short term we see a risk that oil prices will come down and the oil price estimate for Q4 is reduced from USD 70 to USD 63 per barrel.
The estimate of USD 70 per barrel for 2010 is however maintained. Larger companies
such as BP, Statoil, Hydro and RD Shell have the most attractive shares, while among the smaller players on the Oslo Stock Exchange we prefer Norwegian and Questerre. DnB NOR Markets buy recommendations on BP, Statoil, Hydro and RD Shell with stock price targets respectively GBP 610, NOK 155 and GBP 1880 per share.

The two smaller companies have, in our view a good support in their underlying value combined with potential price triggers in the future.
We increase the target price of Questerre up from NOK 19 to NOK 24 per share and maintain purchase recommendation. For Norwegianwe reduce the targetprice down from NOK 79 to NOK 71 per share. This means that buy recommendation here as well maintained.


Best regards

DnB NOR Markets
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