- Goldman Sachs says its “lower for longer” oil price forecast would put significant pressure on integrated oil and gas companies such as BP (BP -0.8%)and Statoil (STO -2.7%), prompting the firm to downgrade its sector outlook to Cautious from Neutral and both energy giants to Sell from Neutral, citing long-term dividend risk for BP and cash-flow pressure on STO.
- The firm also downgrades Chevron (CVX -1%) to Sell from Neutral with a $99 price target, down from $111, saying CVX is burning through free cash flow, which should limit dividend growth in the coming quarters, and pointing risk to 2017 production guidance.