8 Oil stocks To watch –16% surge in oil over the past month
Oil Prices surged 16% over the past month. The Question now is will oil sustain this rally? The answer is probably yes. This is if all remains steady on the international scene.
Oil prices have been rising consistently over the past month for a number of reasons. The main such reason is the Russia-Opec talks that resumed recently. There has been much enthusiasm that this time Russia will go along with the bilateral agreements between them and OPEC to cut back on output. A cut in supply means a rise in price and this will ultimately benefit the Oil companies.
Other reasons are also a strengthening U.S. economy which would spur demand; U.K. inflation; and a weaker U.S. dollar.
Currently West Texas Crude (NYMEX:CLX6) is at $50 a barrel up +0.18% today. However it is up 16% over the past month from $40.00 a +$10.00 increase. Looking at the chart it will meet some resistance at the $50.00 mark but more good news pertaining to the Russia-OPEC deal could drive a breakthrough.
The senior analyst at Price Future Group, Phil Flynn has said “Even as the Fed embarks on its first interest rate adjustment in a year in December, the proclamation by the Fed chair that the economy could run oil to our $60 a barrel target.”
The rise in price to above $50.00 will also make many refineries profitable once again and entice them to be brought back in operation. The demand and supply may fluctuate as a result of this which may cause a few inconsequential corrections.
However with all of this optimism surrounding Oil the Oil stocks are definitely going to gain a boost. Here are 8 of them.
- Rex American Resources Corp (NYSE:REX) – This stock is a must buy, currently at $81.63 with a possible upside of around 16%
- Era Group Inc. (NYSE:ERA) – A must buy stock, currently at $8.13 with an upside of around +25%
- Exterran Corp. (NYSE:EXTN) – A must buy stock, currently at $16.43 with an upside of about +25% to push it well above $20.00 per stock
- Tetra Technologies (NYSE:TTI) – A few uncertainties abound but it has been an analyst favorite for several weeks now. It is currently at $5.85 with a possible +41% upside to push it very near $10.00
- Pioneer Natural Resources Co.(NYSE:PXD) – A great buy. It is currently at $184.42 with only a 12% upside. This still should push it near $200.00 mark.
- Synergy Resources Corp.(NYSE:SYRG) – An excellent stock to buy. Low price at $7.08 yet with a possible 31% upside; one of the highest on this list.
- Marathon Petroleum Corp.(NYSE:MPC)– A long standing company with low risk. The stock is currently at $41.85 with a possible 20% upside.
- Schlumberger NV (NYSE:SLB) – Currently at a fair price of $80.98 with a possible 14% upside.