Top Picks to Take Advantage of Oil Stocks Recovery [JAN 2018]
Supply glut has caused drastic decline in Oil prices and forced companies to decrease their production in 2015, 16 and part of 2017. The impact was heavy losses to oil producing and energy infrastructure companies. Since, mid 2017 the situation has changed due to a series of actions from oil producing majors, OPEC. After a series of production cuts by OPEC and Russia, Crude oil prices have surged reasonably in 2017. Since the four years low of $35.55 in January 15, 2016, Brent crude price rose 88%, this situation is likely to continue due to ongoing compliance with production cuts and strong demand from China.
While there might be slow resurgence in U.S. shale oil production but that might not be enough to keep the oil prices at the current lower level. The oil output from U.S. is up 16% since mid-2016, however, EIA recently reported that U.S. commercial crude storage levels declined by 4.6-million-barrel in a week. U.S. crude production marked a 46-year high in October, last year. The country’s oil demand and exports also rose significantly at the same time.
Does the U.S. shale oil production alone can satisfy the increasing global oil demand in addition to the low oil production in other countries? This is a critical question; the rising oil prices certainly indicate a growing demand. Growing demand and strong compliance to production cuts from OPEC and Russia, present a positive outlook on oil prices.
Oil Stocks Recovery Top Picks for January 2018
Experts at Stock Chase has picked energy infrastructure stocks trading at dead cheap forward valuations.
Josef Schachter, President of Schachter Asset Management selected Bonavista Energy Corp (BNP-T) as a Top Pick,
Norman Levine, Managing Director of Portfolio Management Corp recommends Enbridge (ENB-T) as a Top Pick,
Greg Newman, Director & Portfolio Manager of Scotia Wealth Management recommends Pembina Pipeline Corp (PPL-T) as a Top Pick,
Geoff Scott, Institutional Portfolio Manager of Cambridge Global Asset Management recommends Tourmaline Oil Corp (TOU-T) as a Top Pick,
Don Vialoux, Research Analyst of TimingTheMarket.CA & EquityClock.com recommends Halliburton Co (HAL-N) as a Top Pick,
China has issued 121.32 million tonnes of crude oil import quotas for 44 companies in its first batch of allowances for 2018. With 8.5 million bpd of imports, China is already the world’s biggest importer of crude oil and it is expected to hit another record in 2018 as new refiners become operational.
All the stocks recommended by the experts above took a strong beating in the past two and half years and there is substantial potential for these stocks to reach their previous peaks. The foundation for the recovery of oil prices looks very strong with OPEC and Russia complying with the production cuts and strong demand from China driving the oil prices higher. This is an opportunistic time to grab these potential money makers before it is too late.
Top 11 Oil Recovery Links Refered to in this Post
- Bonavista Energy Corp – referenced by Josef Schachter
- Enbridge – referenced by Norman Levine
- Pembina Pipeline Corp – referenced by Greg Newman
- Tourmaline Oil Corp – referenced by Geoff Scott
- Halliburton Co – referenced by Don Vialoux
- Oil Price Charts
- U.S. crude ends year above $60 on strong global oil demand
- Oil prices stay near high on strong U.S. refinery runs, China data
- Rig Count Is Dead, Or Is It?
- Pembina – Our operations