Stocks to watch at the open

Oil prices remain resilient despite the US shutdown, while Fortescue looks set to take its Pilbara railway fight to the Supreme Court.

Oil Stocks

Brent crude oil closed 0.1 per cent higher to finish at $US109.56 per barrel overnight. The price of oil has remained resilient despite concerns a US government shutdown will have negative implications for the US economy.

With the market feeling more comfortable about LNG projects being on time and to cost there are plenty of opportunities for investors in the current climate.

Credit Suisse have raised the price target of Oil Search to $10 – a 19 per cent premium to yesterday’s closing price of $8.34.

The consensus target price among analysts following Santos, as compiled by Bloomberg, is $15.81. Santos closed at $14.94 yesterday.

Fortescue Metals Group

Fortescue look set to fight it out with Brockman Iron Pty Ltd in the Supreme Court over the cost to use its railway network in the Pilbara.

Fortescue has lodged an application with the WA Supreme Court through subsidiary The Pilbara Infrastructure Pty Ltd, for a review of the Economic Regulation Authority’s ruling on floor and ceiling costs of its Pilbara network.

Fortescue closed at $4.78 yesterday and is closing in on the high of $5.39 reached in February. 

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