November 29, 2022

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Tenaris shines with good news from the USA. What do I do?

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Tenaris Ftse Mib Petroleum

Tenaris ranks second among the leading companies, focusing on the risks of the US president. Analysts opinion.

A new positive close for Tenaris who, after gaining just over two and a half percentage points yesterday, is on track today.

Tenaris is among the best Ftse Mib

After the stock immediately took the earnings trajectory, it finished trading at €16.11, with an advantage of 2.58% and 2.4 million shares have been traded so far, against the last 30-day average of roughly 2.5 million.

Tenaris showed more relative strength than the Ftse Mib, with the best performance in the oil sector and second in the premium basket.

Tenaris boosted by higher oil prices

The stock undoubtedly benefited from the rise in oil prices which, after the declines in the past few sessions, returned to rise again and currently stands at $88.4, an increase of 2.2%.
Tenaris has also been supported by some indications from the other side of the Atlantic.

President Biden threatens major American oil companies: details

US President Biden accused US oil companies of profiting from the Russian invasion of Ukraine, and threatened them with a tax on additional profits if they did not increase production.

Biden has repeatedly called on manufacturers to use their profits to invest in increased production.

Focus on gasoline prices in the United States

Equita SIM notes that gasoline prices in the United States reached record levels of over $5 a gallon this summer.

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They have since pulled back, but are still 60% higher than they were when Biden took office.

High prices have become a political burden for Democrats ahead of next week’s midterm elections, in which the president’s party risks losing control of the House and Senate.

Biden said a plan to restore strategic reserves at $67-72 a barrel would lower prices and give oil companies confidence to increase investment.

Raising taxes on the US oil sector: what are the scenarios?

According to the Financial Times, any law imposing new taxes on the oil industry is unlikely to succeed, especially in a deeply divided Senate.

Moreover, according to the American Petroleum Institute, raising taxes will have the exact opposite effect as it will discourage investment in new production.

Tenaris: Good news on the way?

According to Equita SIM, any acceleration in US oil investment with black gold prices above $67 per barrel would be positive for Tenaris.

Experts note that the company currently generates more than 55% of its turnover in North America, but at the moment the chances of implementing the procedure seem low.

Pending news, Equita SIM analysts maintain a bullish view on Tenaris, with a “Buy” recommendation and a target price of €16.7.