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Global Energy Roundup: Market Talk

7 Jan 2018 11:14 pm

The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.

1814 ET [Dow Jones] Coal miner Aspire Mining has been a slow burn for investors but that could be about to change. Patersons thinks Aspire's current A$30 million market capitalization undercooks the value of its 90%-owned Nuurstei coking coal project in Mongolia. "Based on peer comparatives, we see the potential for a more than A$100 million market capitalization given that the project has the potential to generate US$23-28 million per annum in cash flow (post-tax current pricing) within the next 15-18 months over a circa 10-year period," says Patersons, which starts Aspire at speculative buy. It also likes Aspire's Ovoot coking coal deposit, if China's One Belt One Road policy leads to the construction of a railway that can enable the commodity to be shipped out. (david.winning@wsj.com; @dwinningWSJ)

1732 ET [Dow Jones] Australian pipeline operator APA has fallen 12% over the past month, and Morgan Stanley thinks the stock will remain in the grip of the bears for a while yet. Morgan Stanley is tipping APA's shares to fall relative to the utilities and infrastructure sector over the coming month, citing "increasing uncertainty regarding recontracting outcomes for contracted and regulated pipelines until regulatory guidelines and/or decisions are published." It estimates there is a 60% to 70% chance of this scenario happening. (david.winning@wsj.com; @dwinningWSJ)

1706 ET [Dow Jones] The world oil price has started 2018 on a strong note with West Texas Intermediate pushing decisively through $US60/barrel. Unrest in Iran is no doubt an additional factor, but it's likely to either fade out or be suppressed, so a disruption to Iranian oil production is unlikely, says AMP Capital. Rather strong demand for oil on the back of stronger global growth and OPEC supply discipline are likely the main drivers. The oil price is likely to be capped by a pickup in shale oil production, but it could go a bit higher yet in the interim, it adds. (james.glynn@wsj.com ; @JamesGlynnWSJ)

(END) Dow Jones Newswires

January 07, 2018 18:14 ET (23:14 GMT)

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