The global economy is reopening, Airplanes, in the U.S. and all over the world, are almost fully operating again, traffic is now back. The reopening of major economies around the world has already sent oil up about 40% since the start of the year, but a surge in driving, as well as an increase in goods transportation and air travel, could push oil prices higher.
“Demand is ramping up very quickly because everybody’s driving, and we have the reopening of Europe, which is really starting to happen,” said Francisco Blanch, global commodities and derivatives strategist at Bank of America.
Now that crude oil prices have risen Above $80, the energy sector is once again looking attractive to investors. Oil prices continued to rally on Wednesday, and well known analysts expect the momentum to continue to rise this summer as supply and demand could create a short term squeeze which could push up to $90 a barrel or higher.
As Oil prices are poised to push higher in the short term horizon, these 3 oil stocks look well-positioned to outperform while oil prices are high, but should also hold well if oil prices fall.
- Houston Natural Resources Corp (OTC: HNRC)
- Petrobras (NYSE: PBR)
- Marathon Oil Corp (NYSE: MRO)
Houston Natural Resources Corp (OTC: HNRC) is dedicated to increasing shareholder value through developing natural resources with state-of-the-art innovative technologies in tandem with sustainable environmental services of toxic oil field waste disposal and recycling that are environmentally safe and socially responsible. HNRC anticipates up listing onto OTCQX or major exchange.
Houston Natural Resources Corp and its subsidiaries are led by a highly qualified and experienced team of business experts, engineers, geologist, geophysicist, scientist and accountants. Collectively contributing their many decades professional and practical experience for HNR and its’ shareholders.
Petrobras (NYSE: PBR) recently awarded a ‘very large’ contract to the seabed-to-surface contractor, Subsea 7 SUBCY, to deliver subsea equipment for the development of the Mero-3 oilfield offshore Brazil. For Subsea 7, a very large contract ranges between $500 million and $750 million.
Discovered more than 10 years ago, the Mero field is a giant deep-water oil field development in the pre-salt Santos Basin.
Petrobras, the largest integrated energy firm in Brazil, made the investment decision to develop the third phase of the Mero project in August 2020. The Mero-3 field is situated nearly 200 kilometers along the coast of Rio de Janeiro, about 7,217 feet below the water surface.
As COVID-19 vaccine rollouts and increased travel demand lift crude prices, Marathon Oil Corp (NYSE: MRO) became the latest oil producer to raise its quarterly dividend.
The oil giant raised its dividend by 33% to 4 cents per share and said it reduced $500 million in debt.
Marathon Oil Corporation operates as an independent exploration and production company in the United States and Equatorial Guinea. The company engages in the exploration, production, and marketing of crude oil and condensate, natural gas liquids, and natural gas. As of December 31, 2020, it had estimated proved developed reserves totaling 674 million barrels of oil equivalent (mmboe); and estimated proved undeveloped reserves totaling 298 mmboe.