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.
Dividend Stocks We Like:
- Civitas (CIVI) – 8% Yield
- Riley Exploration (REPX) – 5% Yield
- Suncor (SU) – 4% Yield
- ExxonMobil (XOM) – 3% Yield
Growth Stocks We Like:
- Vital Energy (VTLE)
- Ring Energy (REI)