News feed Citi finds that M&A in the oil and gas sector...

News feed
Citi finds that M&A in the oil and gas sector typically bounces back when oil
futures flatten from steep contango, when there have been 5-6 quarters of rising oil
prices, and when credit markets are open. Citi forecasts a big drawdown in crude-oil
stockpiles globally, starting in 4Q of this year and running through 2021. That would see
Brent oil prices rise above US$50/bbl, while central banks keep credit markets liquid.
"In theory this implies more supportive M&A markets in 2H 2021, aligned with the targeted
timing of final investment decisions" such as Oil Search's Pikka oil field, Woodside's
Scarborough gas field and the Santos-led Dorado oil field, Citi says.