The Zacks Analyst Blog Highlights: Bonanza Creek, Oasis, Forum Energy, Enterprise Products And Independence Contract
Zacks Investment Research | May 15, 2019 10:07PM ET
For Immediate Release
Chicago, IL –May 16, 2019 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Bonanza Creek Energy, Inc. (NYSE:BCEI) , Oasis Midstream Partners LP (NYSE:OMP) , Forum Energy Technologies, Inc. (NYSE:FET) , Enterprise Products Partners L.P. (NYSE:EPD) and Independence Contract Drilling, Inc. (NYSE:ICD) .
Here are highlights from Wednesday’s Analyst Blog:
5 Top Oil Stocks to Buy as Middle East Tensions Escalate
Crude prices settled higher on May 14 following an attack on the facilities of a state-owned oil company in Saudi Arabia. Tensions in the region have flared up ever since relations between Washington and Teheran took a turn for the worse. With a large chunk of the world’s oil supply passing through the region, supply bottlenecks are likely to worsen in the near term.
Prices declined during the early hours of May 15 but Middle East tensions continued to support gains. Meanwhile, OPEC has said that oil demand will exceed expectations as supplies from rival producers decline. Also, market watchers believe that a U.S.-China trade deal is still possible, which will likely bolster demand for crude. This is why it makes sense to pick up select oil stocks.
Saudi Arabia Attacks Boost Prices
On Tuesday, WTI crude increased 1.2% or 74 cents to settle at $61.78 a barrel. Additionally, Brent futures gained 1.4% or $1.01 to end at $71.24 a barrel. The immediate trigger for these gains heightened tensions in the Middle East. According to Riyadh, Yemeni Houthi rebels attacked facilities of state-owned oil major Aramco early on the morning of May 15.
This attack comes a couple of days after four oil tankers were damaged off the coast of the United Arab Emirates. According to Emirate authorities, this was an attack of sabotage. American security agencies think that elements which are allied or closely working with Iran’s government have caused these attacks. On their part, Iranian authorities have denied such claims.
Tensions between the United States and Iran have heightened ever since the Trump administration toughened its sanctions against Teheran. This has hurt Iran’s oil exports and reduced global crude supplies substantially. Nearly 20% of global crude supplies move through the Strait of Hormuz in the Middle East to consumers across the world.
Trade Deal Hopes, Higher Demand to Boost Prices
Market watchers are still hoping for a U.S.-China trade deal. Both sides have intermittently made encouraging noises, allowing investors to hold out hope for a mutually acceptable solution to the long-running trade dispute. In fact, analysts think that the pain caused by the conflict will force both sides to seal a deal.
Additionally, OPEC said on May 14 that demand for crude would defy estimates in 2019. Supplies from rivals of the oil cartel, such as America’s shale producers, hint at tighter global supplies. The situation will worsen if OPEC refused to raise production further. U.S. sanctions against Iran and Venezuela are already weighing on global crude supplies.
Our Choices
Following Tuesday’s attacks, the situation in the Middle East remains tense. The primary trigger for these disturbances is the Trump administration’s decision to tighten sanctions against Iran. Similar sanctions against Venezuela have also tightened global crude supplies.
Meanwhile, OPEC expects crude demand to exceed expectations this year. Also, market watchers continue to believe that the United States and China will conclude a trade agreement. Adding oil stocks to your portfolio looks prudent. However, picking winning stocks may be difficult.
This is where our Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.