UN Lifts Iran Sanctions: FEZ Fell Steeply on Back of Crude Oil
(Continued from Prior Part)
FEZ’s oil and gas industry
The oil and gas industry fell 3.8% on Friday, January 15, 2016, due to new lows in crude oil. As we’ve already seen, because of the easing of international sanctions on Iran, crude oil hit new lows in the global market and fell near 12-year lows. Oil and gas stocks such as Total (TOT), Eni SpA (EAA), and Repsol fell 3%, 3.5%, and 4.8%, respectively, that day. Now let’s look at their performance by using moving averages.
Moving averages
- Total is trading 12% below its 100-day moving average, 13% below its 50-day moving average, and 8% below its 20-day moving average. The stock crossed the 100-day moving average in an upward direction in the last month but fell again from its 100-day moving average in the last month. That happened when the supply glut triggered the crude oil market and crude oil fell to multiyear lows.
- Eni SpA is trading 13% below its 100-day moving average, 12% below its 50-day moving average, and 7% below its 20-day moving average. The 100-day moving average is a strong resistance point for the stock.
- Repsol is trading 30% below its 100-day moving average, 26% below its 50-day moving average, and 15% below its 20-day moving average. The 100-day moving average is a strong resistance point for the stock.
- The 100-day moving average is a strong resistance point for the United States Oil ETF (USO). Most of the US-based oil and gas companies such as Occidental (OXY), Exxon Mobil (XOM), and Chevron (CVX) are trading below their 100-day moving averages.
Analysts’ estimates
Analysts’ estimates indicate an upside of 25%, 23%, and 46% for Total, Eni SpA, and Repsol, respectively, over the coming 12-month period from its current levels as of January 15, 2016.
To know more, you can read What Does Iran’s New Diplomatic Policy Mean for Energy Investors?
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