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Tuesday, Sep 10
It's still not time to buy the refiners, Deutsche Bank says
- It's still not time to buy the refiners, Deutsche Bank says, even after the beat-down which has sent Valero (VLO) -7.3%, Marathon Petroleum (MPC) -17%, Tesoro (TSO) -21%, Phillips 66 (PSX) -13% and HollyFrontier (HFC) -7.7% in the past three months.
- The firm sees a potential entry point around October/November, but a Q3 round of earnings downgrades likely will bring lower equity prices; it's better to wait, "as global oil markets have become weakened by super-high oil prices and demand may be too damaged to allow for a strong winter for refining."
- Several sell-side firms have expressed similar trepidations recently.