XOM - BofA has 'greater confidence in oil recovery' favors crude over nat gas

Bank of America forecasts $50/bbl Brent crude in 2021 and $55 in 2022 as its base case, believing oil markets are "in the early stage of rebalancing enabled by sustained OPEC+ intervention," with "many hallmarks of a cyclical low with remarkable similarities to prior oil cycles" over the longer term."At the sector level we see the broader industry returning to what it used to be: improving returns with options to participate in a recovering commodity cycle," writes BofA analysts led by Doug Leggate.BofA favors crude oil to outperform natural gas barring short-term weather changes, upgrading Continental Resources (CLR) to Buy from Neutral while cutting Cabot Oil & Gas (COG) to Underperform from Neutral and Range Resources (RRC) to Neutral from Buy.Among refiners, the firm downgrades PBF Energy (PBF) to Underperform from Neutral, seeing demand recovery delayed past Q2, and cites Marathon Petroleum (MPC) as its top pick in the group.BofA sees Exxon

For further details see:

BofA has 'greater confidence in oil recovery,' favors crude over nat gas