Section 1: Company Fundamentals

1.1 Company Overview and Performance summary

Company Overview:

W&T Offshore, Inc. (NYSE: WTI) is an independent oil and natural gas producer. The Company is engaged in the exploration, development and acquisition of oil and natural gas properties in the Gulf of Mexico. It has a working interest in over 54 offshore producing fields in federal and state waters (which include 45 fields in federal waters and nine in state waters).

This US Inflation Report covers the Company Overview & Price performance, Summary table, Key positives & negatives, Key metrics, Company details, technical guidance & Stock recommendation, and Price chart.

Price Performance:

• WTI's share price has corrected by 23.00% in the past three months. Similarly, in the long term, the stock has corrected by 46.59% over the past year.
• The stock is currently trading near to the lower end of its 52-week range of USD 64 and 52-week low price of USD 2.45, with the expectations of an upside movement from the current support levels.
• The price is currently below its short-term (50-day) SMA and long-term (200-day) SMA, with the current RSI of around 31.58.

1.2 Summary Table

1.3 The Key Positives & Negatives

1.4 Underlying Commodities Analysis

WTI crude futures-maintained levels above USD81 per barrel on Friday, poised for a weekly gain of approximately 4%. This upward momentum was driven by indications of robust demand in the United States and optimistic projections for global consumption throughout the year. Recent data from the Energy Information Administration (EIA) revealed a surprising decline of 1.536 million barrels in US crude inventories last week, contrary to the anticipated build of 1.338 million barrels. Moreover, the International Energy Agency (IEA) raised its 2024 global oil demand forecast to 1.3 million barrels per day, up from 1.2 million bpd, while revising its projections to indicate a slight deficit for this year rather than a surplus. The rally in oil prices was further fueled by Ukrainian drone attacks on Russian refineries, resulting in a fire at Rosneft's largest refinery, alongside ongoing geopolitical tensions in the Middle East and the decision by OPEC+ to extend supply cuts, all contributing to the bullish sentiment surrounding oil markets.

Section 2: W&T Offshore Inc (“Buy” at the closing market price of USD 2.51, as of March 14, 2024)

2.1 Company Details

2.2 Technical Guidance and Stock Recommendation  

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is March 14, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: The report publishing date is as per the Pacific Time Zone.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

 Resistance: A level at which the stocks prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

 Stop-loss: It is a level to protect against further losses in case of unfavorable movement in the stock prices.