JPMorgan Says Lukoil Top Russian Oil Pick as Crude Slump Lingers
- Oil decline is secular rather than cyclical, JPMorgan says
- The ruble dropped 1.1% to a record low of 77.065 per dollar
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The slump in crude prices that has battered Russian stocks and pushed the nation into a recession is going to persist a while, and Lukoil PJSC is the best oil stock to own in that scenario, according to JPMorgan Chase & Co.
Oil, the nation’s largest export, has retreated 17 percent so far this year, following a 35 percent plunge in 2015. Lukoil, Russia’s second-largest producer, has tumbled 41 percent in London trading from last year’s high in May. On scale from 1 to 5, the stock has a recommendation consensus of 4.2, the highest among 15 global peers, according to data compiled by Bloomberg.