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Tax break hopes drive energy stocks higher
First published in Yahoo Finance, 18 March 2015
"It appears that plummeting oil and gas prices have led governments around the world to rethink their tax policy across the industry as what has been a stable and rich source tax revenue can no longer take the strain," said Tim Wach, Global Managing Director of Taxand. Brent crude prices were down 2.3% at $53.44 a barrel in afternoon trade, trading at a six-week low, while West Texas Intermediate oil was 1.8% lower at $43.10, extending losses after hitting a six-year low on Monday.
Wach said the measures are hoped to prevent a "domino effect" of oilfields shutting down across the region amid forecasts that capital spending on new projects will fall by a third this year - good news for struggling energy services and equipment stocks, who were at the top of the pile in London on Tuesday.
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