Analysts cut ratings for big oil firms reeling from crude slump
After years of painful spending cuts, companies may have to keep cutting
As Goldman Sachs and Citigroup continue to lower oil price expectations for the year, US$115 billion in market value has already been shaved off the MSCI World Energy Sector Index, set to post its second-consecutive quarter of declines.
Bloomberg reports that equity analysts last week cut ratings for a slew of oil-industry stocks, with Macquarie Capital downgrading Shell, Chevron, Eni SpA and BP. The London-based advisory warned companies may need “further, painful cost reductions” if prices continue to slide.