- Big oil companies such as Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX) and Royal Dutch Shell (RDS.A, RDS.B) are betting too much on a return to higher oil prices, Citigroup says.
- The industry now looks to be adopting a slightly adjusted Plan A, with some capex cuts and cost-control but still with a fundamental view that higher oil prices will come to the rescue, CIti says, convinced that best results will be achieved only if the industry commits to full self-help action - Plan B - where the underlying principle is that oil prices may not recover any time soon.
- Citi recommends buying the companies closest to moving to Plan B - Total (NYSE:TOT), BP and ConocoPhillips (NYSE:COP) - and avoid those still stuck on Plan A - Exxon, Chevron and Shell.