Oil Companies’ High-Price Window Is Brief, Analyst Says

An analyst said oil companies have only a short window to benefit from elevated oil prices during the Middle East conflict. According to Jin10, Bank of America equity research analyst Robin Haworth said the opportunity for oil companies to capitalize on high prices is fleeting. He said valuations for major oil and gas companies’ stocks have not expanded significantly because investors view the higher profits as temporary. In a research note, Haworth said oil prices may be capped at $100 a barrel, leaving limited room for further gains. He added that oilfield services companies may have opportunities tied to repairing damage caused by the Middle East conflict. Haworth also said structurally reduced capacity and Ukraine’s attacks on Russian refineries are supporting refining industry margins. However, he said that as oil output and prices normalize, more attractive opportunities may be found in other sectors, including financials, utilities, and health care.