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This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

How to Trade Oil & Gas p6

Premier Oil (PMO)

PMO

Where next for PMO shares?

  • What does increased production potential mean for E&P companies with crude prices and global supply at current levels?
  • Could smaller players like PMO benefit from potential M&A activity just as BG Group did in spring 2015?

The trader’s research and knowledge will help to ascertain whether he or she thinks shares in Premier Oil (PMO) will rally towards the highs of 190p or fall towards lows of 60p.

Deposit requirement: 15%

A £45,000 long position (68,260 shares) can be secured for £7,500* with a CFD, and might seek a re-test of 4 week highs 97p and a 40% profit in the short or medium term, while a return to 52 week highs 190p would imply a 175% profit.

A more bearish outlook could give a trader cause to take a short position (looking for the price to fall), where a pullback to 12 year lows 60p could return 13%.

Broker Consensus: 42% Buy, 33% Hold, 25% Sell

Average 12-month broker target price:
120p

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This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.

Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research

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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
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