Insights

Why this Goldman Sachs forecast could see these 3 ASX energy shares lift off

If the UBS and Goldman Sachs analysts got these forecasts right, these 3 ASX energy shares could see their share prices lift off.
The post Why this Goldman Sachs forecast could see these 3 ASX energy shares lift off appeared first on The Motley Fool Australia. –

oil and gas operations at sunset signifying senex share price

Like it or not, fossil fuels are going to be powering much of our energy needs for decades to come. 

Despite the rise of electric vehicles, that remains particularly true for many of our cars and trucks. Not to mention boats, planes and… well, you get the idea. 

Yes, the price of oil crashed in 2020. With demand evaporating as COVID-19 travel restrictions idled planes, boats and cars, Brent crude oil tumbled to US$19.33 a barrel on 21 April last year.

Since then energy prices have been steadily regaining lost ground. Brent crude currently is worth US$57.67 per barrel. That’s up 54% (from US$37.46 per barrel) just since 30 October.

Part of the price rise is due to increased demand as parts of the world relaxing some of the stricter virus restrictions. Reduced supply due to output cuts from OPEC members has also helped lift the oil price.

According to an analysts at UBS and Goldman Sachs, oil prices are likely to head still higher from here.

As Bloomberg reports:

UBS forecast that Brent crude would reach $US63 a barrel by the second half of this year and $US65 by the first quarter of 2022. Goldman Sachs said it expected the benchmark to reach $US65 by July.

Those forecasts would mean another 13% hike in the price of Brent crude. So what does that mean for ASX energy shares? 

3 leading ASX energy shares that stand to benefit

The ASX has no shortage of energy shares. While many factors determine how their share prices move, they’re all likely to perform better when they receive more for the oil and gas they pump from the ground.

We’ll stick to 3 of the biggest energy stocks trading on the S&P/ASX 200 Index (ASX: XJO).

First, there’s Oil Search Ltd (ASX: OSH), with a market cap of $8.3 billion. Since oil prices hit a low on 21 April last year, the Oil Search share price is up 62%. Oil Search pays an annual dividend yield of 1.7%, unfranked.

Next, we have Santos Ltd (ASX: STO), with a market cap of $14 billion. Santos’ share price has gained 70% since Brent bottomed on 21 April. Santos pays an annual dividend yield of 1.6%, fully franked.

Third, there’s Woodside Petroleum Limited (ASX: WPL), with a market cap of $24 billion. Since 21 April’s rock bottom oil prices, the Woodside share price is up 27%. Woodside pays an annual dividend yield of 4.8%, fully franked.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why this Goldman Sachs forecast could see these 3 ASX energy shares lift off appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!