Tips for Buying Oil Stocks in 2017
After taking a beating for over two years, the oil industry is making a comeback helped by OPECs plans to cut production by 1.2 million barrels daily. The reduction is expected to be in place by the end of January, 2017. Reports recently received from Saudi Arabia, the second largest industry producer behind Russia, show a production cut of 486,000 barrels daily since January 1. This is de-facto evidence that the production cut is in effect already. Information from the Energy Information Administration in the U.S. also shows a reduction in U.S. stockpiles of 7.1 million barrels in the week ending December 30, 2016. This is another indicator predicting an upcoming increase in global oil markets and stock values.
A recent interview of 29 oil industry analysts done by Reuters showed an expected oil price of about $57 a barrel for 2017. The oil industry is still in the early stages of recovery, and analysts believe now is a good time for making investments in oil industry stock. The five top stocks predicted for gains during the year include Chevron (NYSE:CVX), Whiting Petroleum Corp (NYSE:WLL), Halliburton Corp. (NYSE:HAL), Transocean LTD (NYSE:RIG) and ExxonMobil (NYSE:XOM).
Cantor Fitzgerald’s Sam Wahab reflects on 2016’s top oil stocks and gives top picks for 2017