The new year is expected to get off to a good start in the E+P oil sector. Hardy (which are rebounding as we speak) are expected to claw their way back up out of the recent doldrums. Sterling now that the consolidation has taken place have a drilling note/target of 200p, whisper is that as the drill progress’s Sterling will climb. There are murmurings that 2010 will see significant mergers and acquisitions in this sector. GKP are at the top of this list. (Border +Southern petroleum are one to watch through out 2010)
Most of the small E+P aim stocks with good criteria/fundamentals are capable of gains through out 2010. One to stay clear of is Nautical petroleum which has consistently disappointed the market as has woburn energy which is a reincarnation of another infamous oil stock that led investors a merry dance. All in all oil/banks are where the gains are to be had in 2010
The notes being circulated on this sector paint a rosy picture as the Global recession turns the corner, remember that UK plc are lagging behind in the recovery that is currently being touted. As for a double dip the likely hood recedes as each month passes. China/India/SouthAmerica are all reliant on oil and have thirsty economies that need to be supplied. This is where the global recovery will gather momentum.
Bears are on the run. Bulls are in the ascendency.