Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
Login My Member Benefits Archives Research Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    ×
  • Subscribe
Enter stock ticker or keyword
×
5 Ways to Beat the Fed (and Crush Inflation)

Email this Article

Send with mail | ahoo instead.
Required Needs to be a valid email
Required Needs to be a valid email
List of Oil Stocks to Watch in 2017
http://mney.co/2k42O0Y
Required Please enter the correct value.
Twitter
Stocks: CVX, MMP, PAA, TOT, XOM

List of Oil Stocks to Watch in 2017

By Money Morning News Team, Money Morning • January 25, 2017

Start the conversation

Comment on This Story Click here to cancel reply.

Or to contact Money Morning Customer Service, click here.

Your email address will not be published. Required fields are marked *

Some HTML is OK

list of oil stocksThe price of oil has soared more than 50% in just over one year. And in the last two months, it has jumped an impressive 15% since the OPEC deal to curb production.

That's why we're bringing Money Morning readers a complete list of oil stocks to watch that are profiting from soaring oil prices.

But just because oil prices are rising doesn't mean that every oil stock is a good investment.

Some oil stocks will benefit from the forces behind climbing oil prices. Some will not.

Below, we're going to give you a list of oil stocks to watch, along with list of oil stocks to avoid now.

But first, let's look at why oil prices are climbing and why that's so bullish for certain oil stocks...

Why Oil Prices Will Continue to Climb

Oil prices hit a decade low roughly a year ago. The January 2016 price for one barrel of West Texas Intermediate (WTI) was just $35.73.

Recently, WTI has been selling at $54.12 per barrel. That's a more than 50% jump in just one year.

Money Morning Global Energy Strategist Dr. Kent Moors forecasts a continuation of price increases for oil this year for three reasons.

The first reason is an agreement by the Organization of Petroleum Exporting Countries (OPEC) to cut production in order to drive the price of oil higher.

Trending: Natural Gas Prices in 2017 Will Soar Double Digits

In November 2016, the OPEC countries and 11 other nations agreed to cut their oil production by 32.5 million barrels per day in 2017. Since then, crude oil prices have increased approximately 18%.

Moors forecasts that the price of oil will remain over $50 per barrel as long as OPEC's agreement remains in place.

The second reason to expect increases in the price of oil is worldwide demand. The EIA estimates that energy demand will rise 25% by 2040, citing both the expected increases in populations in India and China and expanded energy demand from these two countries.

Oil is expected to play a major role in fulfilling the demand for energy. In fact, the 2017 Energy Outlook from Exxon Mobil Corp. (NYSE: XOM) estimates that oil will remain the world's primary energy supply through 2040.

The third reason behind an expected climb in 2017 oil prices is the new presidential administration's policies on energy and oil. President Donald Trump's proposals are good news for companies who work with crude oil.

Trump's proposals are aimed at more U.S. energy independence for the United States. This could reduce restrictions on U.S. energy exploration and oil drilling.

His cabinet secretary nominees indicate that cutting restrictions could be very much part of the plan.

Scott Pruitt, the Oklahoma attorney general, was nominated to lead the Environmental Protection Agency (EPA). As his state's attorney general, Pruitt filed a lawsuit against the EPA aimed at its environmental regulations and their impact on oil and gas companies based in Oklahoma.

In addition, the former CEO of Exxon, Rex Tillerson, was been nominated as secretary of state. If he is confirmed, Tillerson could have one of the most important jobs in any president's administration.

But before we get into the oil stocks we recommend for 2017, here's a look at the oil stocks that should be avoided this year...

List of Oil Stocks to Avoid: Big Oil

Along with a list of oil stocks poised to benefit, we have a list of oil stocks we do not recommend investors buy.

This list is made up of Big Oil: BP Plc. (NYSE: BP), Exxon Mobil Corp. (NYSE: XOM), Total SA (NYSE ADR: TOT), Chevron Corp. (NYSE: CVX), Conoco Phillips (NYSE: COP), Eni SpA (NYSE ADR: E), and Royal Dutch Shell Plc. (NYSE ADR: RDS.A).

These companies explore, produce, refine, transport, and sell.

But they also have massive expenses. Although the price of oil per barrel rose through 2016, it is still below the $90 per barrel price it hit in 2014.

Big Oil companies have invested in extremely large projects in the past. Moors points out that right now, they are having to sell assets just to pay down debt from these huge projects to keep their dividends afloat.

Big Oil stocks all have robust dividends, but they cannot fund them from profits because of their debt service burden.

Because of the condition of their balance sheets, investors should not choose Big Oil from the list of oil stocks to buy.

So, what is on our list of oil stocks to buy? Here are our top two picks...

Join the conversation. Click here to jump to comments…

Login
guest
guest
0 Comments
Inline Feedbacks
View all comments
LIVE
Visit Money Morning Live


Latest News

January 19, 2023 • By Money Morning Stock Research Team

These Stocks Could Go To $0

January 9, 2023 • By Money Morning Stock Research Team

The Government Is Pouring $391 Billion Into These Stocks - Buy Now

December 27, 2022 • By Money Morning Staff Reports

6 IPOs in 2023 You Can’t Afford to Miss
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Profit Takeover This Is VWAP Penny Hawk Trading Today Midday Momentum Pump Up the Close
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Night Trader Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Extreme Profit Hunters Profit Revolution Warlock's World Quantum Data Profits Live Trading Alliance Trade The Close Inside Money Trader Expiration Trader Vega Burst Trader Flashpoint Trader Darknet Hyper Momentum Trader Alpha Accelerators Weekly Profit Cycles

© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell or Share My Personal Information

wpDiscuz