The Globe and Mail reports in its Thursday edition that Canaccord energy analysts think recent global banking turmoil has overshadowed a "constructive Chinese demand backdrop."
The Globe's David Leeder writes that the analysts say in a note: "High-profile bank failures in the U.S. and Europe have shaken the global financial markets as governments and central banks scramble to contain collateral damage. This has triggered significant volatility in many risk assets, with WTI recently falling to $65 (U.S.) per barrel. ... Against this backdrop, OPEC and the IEA expect a surge in Chinese demand to lift the global oil market from surplus to deficit later this year. The IEA also believes this will be accompanied by a continued recovery in global air traffic, taking average world oil demand to a record 102 million barrels per day in 2023." On Wednesday, Canaccord lowered its price forecasts for both oil and natural gas for 2023 and 2024. Accordingly, the analysts cut their share target for Surge Energy to $13.75 from $14.75, while keeping their "buy" call intact. Analysts on average target the shares at $13.86. The Globe reported on Nov. 25 that Raymond James rated Surge "outperform." It was then worth $9.52.
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