Leading Independent Investment Research, Morningstar, Inc.

Morningstar

Leading Independent Investment Research

Morningstar, Inc.

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. We offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors. 

Morningstar provides data on more than 500,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 16 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries, with more than $180 billion in assets under advisement or management as of June 30, 2015. We have operations in 27 countries.

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Commodities

<div class="content-highlight"><h2><strong>Above-Consensus Forecasts for Medium-Term Growth, but Electric Vehicles Loom Large for Oil</strong></h2></div><hr><p>Consensus is missing the boat on China’s medium- and long-term oil demand, but, interestingly, in different directions. Over the next five years, we’re bullish. We think that by relying on China’s inflated official GDP growth figures, other forecasters are underestimating China’s income elasticity of oil demand. Looking from the bottom up, near-term improvements in China's fuel-efficiency standards will be more modest than headline requirements suggest. Also, others have mistakenly identified the decline of China's investment boom as necessitating the end of diesel growth. Still, in the long run, electrification of China’s vehicle fleet looms large for oil. We think China's EV adoption is primed to take off, reaching 25% of sales by 2028 and catalyzing peak oil demand for China as early as 2030. We remain bearish on long-term oil prices, with the belief that U.S. shale will sop up incremental medium-term Chinese demand. As such, investors should be cautious with oil-leveraged stocks. On the gas side, above-consensus forecasts for natural gas consumption drive our bullish view on China’s LNG imports. Top LNG-related investment ideas include <a href="https://www.smartkarma.com/entities/16683" target="_blank" data-smartkarma-citation="entities:16683:1">Cheniere Energy (LNG US)</a>, <a href="https://www.smartkarma.com/entities/316" target="_blank" data-smartkarma-citation="entities:316:1">Enn Energy Holdings (2688 HK)</a>, and <a href="https://www.smartkarma.com/entities/22108" target="_blank" data-smartkarma-citation="entities:22108:1">Royal Dutch Shell (RDSA LN)</a>.</p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/068/778/original/img%201.JPG?1541396289" class="editor-image img-responsive" data-smartkarma-image-id="68778"></figure><p><em>Analysts: Preston Caldwell, Stephen Ellis et al</em></p>

Above-Consensus Forecasts for Medium-Term Growth, but Electric Vehicles Loom Large for OilConsensus is missing the boat on China’s medium- and long-term oil demand, but, interestingly, in different directions. Over the next five years, we’re bullish. We think that by relying on China’s inflated official GDP growth figures, other forecasters are underestimating China’s income elasticity of oil demand. Looking from the bottom up, near-term improvements in China's fuel-efficiency standards will be more modest than headline requirements suggest. Also, others have mistakenly identified the decline of China's investment boom as necessitating the end of diesel growth. Still, in the long run, electrification of China’s vehicle fleet looms large for oil. We think China's EV adoption is primed to take off, reaching 25% of sales by 2028 and catalyzing peak oil demand for China as early as 2030. We remain bearish on long-term oil prices, with the belief that U.S. shale will sop up incremental medium-term Chinese demand. As such, investors should be cautious with oil-leveraged stocks. On the gas side, above-consensus forecasts for natural gas consumption drive our bullish view on China’s LNG imports. Top LNG-related investment ideas include Cheniere Energy (LNG US), Enn Energy Holdings (2688 HK), and Royal Dutch Shell (RDSA LN).Analysts: Preston Caldwell, Stephen Ellis et al

Crude Oil

China Oil & Gas Demand