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The ZLT was down 12.1% last week as oily and oily service portions of the portfolio were hit by a sharp drop in WTI on China demand fears, US recession fears, and exacerbated by a weak broad market. News that OPEC is delayed decurtailment for 2 months came as no surpise to us but no save to the market. We see oil as overdone to the downside but expect to see oily upstream names with downward price target revisions in the lead up to the 3Q reporting season as the sellside reduces their 2H24 and potentially 2025 oil price decks.
Holdings Watch:
- We sold two names out of the portfolio last week (one midstream natural gas and one oil service).
- The blotter is updated.
Have a good weekend,
Z
