Company Overview: W&T Offshore, Inc (NYSE: WTI) is an independent energy company focused on exploring, developing, and acquiring oil and natural gas assets in the Gulf of Mexico. The company holds working interests in more than 53 offshore producing fields, including 44 in federal waters and nine in state waters.

As per our previous US Daily Report published on ‘WTI’ on 10^th February 2025, Kalkine provided a ‘Speculative Buy’ stance on the stock at USD 1.55, based on “price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis”.

Current Macro and company specific rationales:

• Impact of U.S. and China Tariffs on Global Trade: S. tariffs, mirrored by China’s 34% tariff on all imports from the United States as announced by the official Xinhua News Agency, have escalated trade tensions, disrupting global supply chains and reducing demand for oil, a key driver for West Texas Intermediate (WTI) prices. This tariff war dampens economic activity, particularly in energy-intensive sectors, leading to a decline in WTI prices as global oil consumption weakens.
• Fears of a U.S. Recession: Concerns over a potential U.S. recession have reduced expectations for oil demand, as economic slowdowns typically lead to lower industrial activity and consumer travel. This bearish outlook on energy consumption directly contributes to the downward pressure on WTI prices, reflecting fears of reduced crude oil usage.
• Oversupply Concerns in Global Oil Markets: The global oil market faces an oversupply risk, with major producers like OPEC+ maintaining high production levels despite slowing demand growth. This imbalance, coupled with increased U.S. shale production, floods the market with excess crude, driving WTI prices lower as supply outstrips demand.
• Shift Toward Renewable Energy Sources: Growing global adoption of renewable energy, driven by policy incentives and environmental concerns, is reducing long-term reliance on fossil fuels like WTI crude. This structural shift in energy markets diminishes demand for oil, contributing to a sustained decline in WTI prices as investors anticipate a future with lower oil dependency.

Noted below are the details of support and resistance levels provided in our previous report:

WTI’s Daily Chart

Considering the current trading levels, volatile macro environment, tariffs increased both by US and China, breaking of key important support of USD 1.40-USD 1.50, and risks associated, a ‘Sell’ rating is assigned to the “WTI” at the current market price of USD 1.25, as of April 04, 2025, at 07:30 am PDT. 

Note: This report may be updated with details around fundamental and technical analysis, price/ chart in due course, as appropriate

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is April 04, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’