Longode Bank analyst Robin Haworth says the window for oil companies to
capitalize on higher prices linked to the Middle East conflict is very short.
Major oil and gas stocks have not rerated significantly as investors view
elevated profits as temporary. Haworth warns oil may be capped around $100/bbl,
leaving limited upside. He sees opportunities in oilfield services to repair
conflict damage. Structural capacity declines and Ukrainian strikes on Russian
refineries are supporting refining margins, but as output and prices normalize
he prefers financials, utilities and healthcare for more attractive
opportunities.
