The Latest from ICAP
ICAP’s View on the Oil Market and Energy Stocks
•ICAP has had a cautious view toward the energy sector over the past year and a half.
•Today, oil price expectations are lower and we believe energy equity valuations are more reasonable.
•However, we believe it is still too early to significantly add to energy positions. We see continued deflationary pressure on oil prices and our work suggests most energy stocks don’t provide an adequate margin of safety.
•We are selectively adding to energy stocks with key attributes that our process identifies as attractive.