CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Jefferies analysts say Premier Oil share price set to soar ahead of earnings update

The UK-based oil and gas company will release its latest trading and operations update on Wednesday 15 July, with the stock suffering heavy losses due to a crash in oil prices amid weakening demand due to the Covid-19 pandemic.

Premier Oil will release its latest trading and operations update on Wednesday 15 July, with the stock suffering heavy losses due to a crash in oil prices amid weakening demand due to the Covid-19 pandemic.

But thanks to national lockdowns beginning to ease and OPEC+ led production cuts, oil prices have started to stabilise and found support at $40 - $42 range per barrel.

In fact, the secretary general of OPEC said on Monday that he believes that oil markets are moving closer to balance ahead of the group meeting with Russia to decide whether or not to ease production cuts from August.

Premier Oil has continued to struggle, however; with the stock falling 24% since hitting a 15-week high of 53p back on 23 June and looking likely to continue its trend lower this week.

Premier Oil is trading at 41p per share at the time of publication.

Analysts at Jefferies believe Premier Oil shares are set to soar

Even though Premier Oil continues to see its share price struggle amid challenging market conditions, analysts at Jefferies remain optimistic about the stock.

Analysts at the US-based investment bank reiterated their ‘buy’ rating for Premier Oil on Monday and set a target price of 68p per share for the stock – implying a potential upside of 65%.

Premier Oil: Technical Analysis

Shares in Premier Oil tumbled by nearly 90% from their peak at £120.85 in January to the trough at £13 in mid-March. But since hitting those lows they have recovered over 200 percent, but are still down 60% on the year.

Premier Oil stumbled into resistance at the 38.2% Fibonacci retracement line at £54.21 and came close to testing the 23.6% fib line at £38.47 last week, according to Victoria Scholar, market analyst and presenter at IG.

‘The psychological £40 mark looks to be a key support level that the stock should try to remain above if the last few month’s positivity is to remain on track,’ she said. ‘However June provided two forewarnings of potential weakness ahead, firstly with a sell signal from the RSI dropping below 70 and secondly with negative divergence with the MACD histogram.’

‘But the stock is yet to break below the ascending trendline of support, which would be bearish for its outlook,’ Scholar added.

How to trade stocks with IG

Looking to trade Ocado and other stocks? Open a live or demo account with IG and buy (long) or sell (short) shares using derivatives like CFDs in a few easy steps:

  1. Create an IG trading account or log in to your existing account
  2. Enter ‘Ocado’ in the search bar and select it
  3. Choose your position size
  4. Click on ‘buy’ or ‘sell’ in the deal ticket
  5. Confirm the trade

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.