[ad_1]
The new normal for crude oil could be $100 a barrel, according to leading energy analyst Paul Sankey. Sankey, ranked No. 1 by Institutional Investor for energy independent research in 2023, sees OPEC+’s surprise production cut paired with supply drivers as major catalysts. “Global oil production capacity really has a problem. I mean we really only have growth in Guyana outside of OPEC+ and almost nothing else to speak of,” Sankey Research’s president told CNBC’s ” Fast Money ” on Monday. WTI crude posted its best day Monday since April 2022. The move comes after crude prices dropped to a 15-month low in mid-March. Sankey said he doesn’t believe the economic slowdown will impact his bullish outlook. He pointed to the start of driving season, U.S. refineries coming back online and natural seasonal demand as other factors that could boost prices. “Now that the Saudi put has kicked in, I think that you do have a better valuation support for the names,” he said. When asked whether legacy integrated names or refiners are the best way to play the space, he picked service companies such as Schlumberger and Baker Hughes . “The one that people want to buy quite rightly is service companies,” said Sankey. “That’s the most juice — particularly international service.” Schlumberger was up nearly 7% and the seventh-best performing stock in the S & P 500 on Monday. Meanwhile, Baker Hughes rose to almost 4%. A CNBC PRO screen found that Schlumberger was also typically the best performer during past oil spikes.
[ad_2]
Source link
