Video: Oil Demand Continues to Grow – These Oil Stocks Should Benefit From Continued Secular Tailwinds

April 24, 2024
  • Demand for oil continues to grow, only stopping around the COVID Crisis, reaching pre-pandemic demand levels in 2023.
  • China and Europe are both bottoming out and beginning their recovery, which should provide further tailwinds.
  • We favor crude over natural gas, given that natural gas is a byproduct of oil production, which can lead to supply gluts.
  • The past down cycles bankrupted many E&P companies and made the survivors more conservative.
  • Hence, there is insufficient capital development for expansion, meaning supply will not overshoot demand.
  • Hydrocarbons are still dominant in transportation, and we feel that the developing world will buoy continued demand growth.
  • Civitas (CIVI) – 8% Yield
  • Riley Exploration (REPX) – 5% Yield
  • Suncor (SU) – 4% Yield
  • ExxonMobil (XOM) – 3% Yield
  • Vital Energy (VTLE)
  • Ring Energy (REI)