On Wednesday, oil prices rose to peaks not seen since the end of 2014. The immediate impetus for this surge was the fall in crude oil inventories in the United States. Observers of the sector also remained worried that the protracted geopolitical tensions will lead to a drop in supply from the largest countries-exporters of oil.
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Meanwhile, there were reports that Saudi officials are trying to push oil prices to $80 a barrel in anticipation of the start of the IPO Aramco. At the same time, the demand for pumps is expected to go within the next few weeks as the summer driving season. Add the oil stocks in their portfolios at this time looks like the perfect option.
Slide oil reserves in the United States, helping to defeat a $68-barrier
After Wednesday, WTI futures closed 2.9% higher at $68.47. It was the first time since December 2014 that the US oil price closed above $68 per barrel. Meanwhile, Brent crude rose 2.7% to close at $73.48 per barrel, its best settlement since November 26, 2014.
The next day, OPEC refused to stop the fall in oil prices, a position that she has changed since then.
One of the immediate reasons for the surge in US crude oil fell by 1.1 million barrels of oil reserves in the U.S. in the week ended April 13. Meanwhile, demand for gasoline reached a record level of almost 9.9 million barrels in the week, the highest level ever seen in April.
Geopolitical Tensions, Higher Prices Of Oil
Also fueling the rally in oil prices over the last several works of a fear that geopolitical tensions in the middle East could disrupt oil supplies. The conflict in Syria escalated after the air strike, carried out jointly by the USA, France and the United Kingdom.
Rebel attack the rebels from Yemen, Saudi Arabia has also led to increased tensions. Meanwhile, observers are waiting to see if the administration trump decides to impose sanctions on Iran once again, after may 12. In addition, oil production in Venezuela remains crippled due to the ongoing economic crisis.
Some market participants characterize the unexpected drop oil stocks in the United States, which contributed to the increase in oil prices on Wednesday, as a temporary phenomenon. But other factors also work to increase oil prices higher. High level of compliance with OPEC production management agreement and geopolitical tensions are working to ensure the growth of oil prices.
In addition, since the beginning of the summer driving season around the corner, prices at the pump should rise substantially. Considering all these factors, it makes sense to choose to choose the oil reserves at the moment. However, choosing a winning stock can be difficult.
This is where our result comes to VGM. Here V is the value g for growth and M for momentum and the result is a weighted combination of these three points. This result allows to eliminate the negative aspects of the promotion and selection of the winners. However, it is important to keep in mind that each Rating style will carry a different weight, and arrive at the result of the VGM.
We narrowed our search down to the following actions, each of which has a zacks Rank #1 (strong buy) and the result VGM B.
Of flotek industries Inc (USA:FTK) develops and supplies prescribing chemistry-based technologies, including specialty chemicals for customers in the oil and gas industry.
Projected growth rates of flotek industries for the current year is more than 100%.The zacks consensus estimate for the current year has improved by 3.2% over the last 60 days.
Nine energy service, Inc (USA:nine) provides land completion and production services in unconventional oil and gas resources.
Growth is expected nine energy service for the current year is more than 100%. The zacks consensus estimate for the current year has improved by 34.1% over the last 30 days.
Baytex energy Corporation (Ticker NYSE:BTE) acquires, develops and produces oil and gas field in the eagle Ford and Western canadian Sedimentary basin.
Baytex Energy rating at zacks consensus estimates for the current year has improved by 3.3% over the last 30 days.
Mammoth energy services Inc. (Nasdaq:Tusk) is an integrated oilfield services company.
Expected revenue growth of mammoth energy services for the current year is more than 100%. The zacks consensus estimate for the current year increased by 16.5% over the last 30 days.
The Ukrainian company (Ticker NYSE:CEO) is company that is engaged primarily in exploration, development and production of crude oil and natural gas offshore China.
FTI Consulting Rating VGM B. the company has expected earnings growth to 80.8% for the current year. The zacks consensus estimate for the current year has improved by 4.7% over the last 60 days.
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Last year, he made $ 8 billion global revenue. By 2020 it is projected, blast through the roof to $ 47 billion. The famous investor mark Cuban said that he will produce “the first trillionaires in the world,” but that still should leave enough money for ordinary investors who make the right deals early.
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