Analysts are out this morning with some bullish notes about energy commodities and energy stocks, and OPEC’s president hinted that it could tighten supply to lift oil prices. But oil futures have mostly traded lower today, with the commodity responding more dramatically to concerns about Europe and China than to hints of optimism from elsewhere.
Nymex oil futures were down 62 cents to $83.48 per barrel shortly after noon Eastern time, with Brent futures sliding by 87 cents to $98.60. OPEC President Abdul Kareem Luaibi said that it would be “reasonable and acceptable” for OPEC to keep the price of Brent at $100 to $120, but didn’t offer specifics, the Christian Science Monitor reported. OPEC is set to meet on Thursday. Oil supply from OPEC members has been running 2 million barrels above targets, CSM notes.
Goldman Sachs analysts urged investors to take another look at energy commodities, predicting that they will rise 41% in the next year.
And BMO Capital Markets analyst Brian Belski wrote in a report that investors should consider buying certain kinds of energy stocks. “We believe investors should construct a balanced and diversified list of holdings within the Energy sector. As a result, we prefer a combination of defensive names that focus on yield and/or cash and names that are exhibiting the best potential growth opportunities in forward earnings.”
Belski says the following stocks have those characteristics: Chevron (CVX), Halliburton (HAL), Marathon Oil (MRO), Noble Energy (NBL) Schlumberger (SLB), Spectra Energy (SE) and Valero (VLO).
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