oil-and-gas-stocks-offer-longterm-value

Oil and gas stocks offer long-term value

Peter OÆMalley, head of natural resources for Asia at Deutsche Bank, talks about how the credit crunch and the sharp downturn in commodity prices are impacting natural resources companies in Asia.
The deteriorating economic environment has resulted in a downturn in commodity prices, including oil. How is this affecting natural resources firms
Oil prices have declined sharply due to a largely negative economic outlook, both regionally and on a global basis. Many economists are now forecasting global growth of less than 1% for 2009, versus a consensus of around 5% a year ago. Some economies, such as China, may offer growth that is more attractive on a relative basis, but other key markets, including Japan and the United States are already in recession. As far as global energy stocks are concerned, what we have seen is a significant contraction of valuation multiples, almost across the board....
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