While Riley Wealth Management, LLC no longer has a custodial affiliation with Raymond James I have maintained a relationship with their energy research department and regularly read their industry updates.
Recently Raymond James Energy lowered their price targets on a few companies to incorporate a slightly higher risk premium given the depressed oil price environment. Specifically, they lowered their price targets on Legacy Reserves (from $32 to $28).
Several fundamental oil drivers have deteriorated over the past couple of months including: increased production from Libya and Nigeria, lower global oil demand growth assumptions and Saudi Arabia’s apparent willingness to allow global oil prices below $90 per barrel. In English that means their longer-term oil price outlook is modestly worse than before.
If you have any questions about how the price of oil may affect positions in your account please don’t hesitate to call.
bihorigan
billriley
Riley Wealth
Riley Wealth 