Shaw and Partners senior investment adviser Craig Sidney said he believed the fundamentals for oil remained strong and energy stocks would recover from their slight falls this week.
“There has still been underinvestment for the last 10 years. So, I still think oil prices are probably overdone on the downside, so I’d expected them to rebound in the short term,” Sidney said.
Ahead of earnings season next week, Sidney said the outlook for the resources was his main focus, with rising costs potentially limiting growth.
“Resources have probably been held back a bit,” Sidney said. “And partly because they’re probably most impacted by rising costs, but there’s probably an increasing government regulatory concern, whether it be some of the coal miners or some of the oil producers.”
Elsewhere, Core Lithium moved 6.2 per cent higher to $1.29 on Friday after announcing the appointment of new chief executive Gareth Manderson, who previously spent 22 years at Rio Tinto.
Movements on the local bourse early next week are likely to be impacted by how Wall Street reacts to the release of US non-farm payroll data on Friday night.
Tweet of the day:
Quote of the day: “Inflation will get a little bit worse between now and the end of the year… but once it peaks, it will reduce next year. We don’t see that it will hit the sort of double figures that are being spoken about in Europe,” Prime Minister Anthony Albanese told ABC Radio.
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