From the news wires...
Crude's plunge in October and November could result in a bout of sector M&A, says Credit Suisse, as many global oil-and-gas companies are flush with cash thanks to oil's strength before this quarter began. The investment bank notes recent margins have been even higher for firms than in the last big oil rally in 2012, when prices averaged $110/barrel. "We surmise that some larger companies, looking for ways to deploy their cash windfall, may take advantage of a dip in oil prices to pounce on smaller players," says Credit Suisse. In Australia, it thinks Woodside, Santos and Beach could be targets among bigger players there. Smaller producers are also liable to have suitors as well, the bank adds. The ASX 200's energy sector is up 2.5% this morning, matching the jump in oil prices following a pause in further US-China tariff action.
