The selloff in energy equities has created a "unique" opportunity to build long positions, especially in large-cap stocks where discipline and return of capital themes continue to develop, says Goldman Sachs energy specialist Brian Kinsella.
Crude oil’s selloff has sparked debate on where energy sits in a portfolio relative to other market sectors, but Goldman analysts believe commodity markets are set to outperform other asset classes and remain convicted on their bullish oil call.
U.S. WTI crude oil today settled -3.2% at $59.20/bbl after nearly falling below $58, with Brent crude -2.6% at $63.15, plagued by rising U.S. production and a spike in the U.S. oil rig count; for the week, U.S. crude -9.6%, Brent -8%.