Best 3 Stocks to Buy Now As Oil Prices Rise Above $50
As oil prices continue to maintain the latest trajectory above the psychologically significant $50/barrel level, investors are increasingly recalibrating their investment prisms for beaten-down oil and gas companies. So what are the Best 3 Stocks to Buy Now?
WTI has rallied 12.8% over the past 30 days to trade at $53.02 per barrel while Brent is up 12.3% to $56.49, levels they last touched nearly a year ago thanks to a revamped OPEC-plus deal as well as an unexpected bonanza after Saudi Arabia announced plans to unilaterally cut its oil production by another 1M barrels.
Enter Shale 3.0.
For a sector that was supposed to be on its deathbed, U.S. shale might be the biggest beneficiary yet of the oil rally as higher crude prices offer a much-needed reprieve to strained balance sheets. The U.S. shale patch bears some of the highest production costs in the world, with most companies in the sector needing oil prices between $50 and $55 per barrel to break even.
That’s highly significant because it implies that another 5-10% climb in oil prices from here could mean the difference between bleeding cash and gushing profits for the shale sector.
But not all oil and gas companies need such high oil prices to break even, with a handful solidly in the green even at current prices.
Click here to read the full article.
Source: Oil Price
If you have further questions aside from the Best 3 Stocks to Buy Now above, feel free to reach out to us here.
Leave a ReplyWant to join the discussion?
Feel free to contribute!