The Zacks Analyst Blog Highlights: CrossAmerica, Pembina, BP Midstream, Crestwood Equity And Delek
Zacks Investment Research | Sep 12, 2019 08:56AM ET
For Immediate Release
Chicago, IL –September 12, 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: CrossAmerica Partners LP (NYSE:CAPL) , Pembina Pipeline Corp. (NYSE:PBA) , BP (LON:BP) Midstream Partners LP (NYSE:BPMP) , Crestwood Equity Partners LP (NYSE:CEQP) and Delek Logistics Partners LP (NYSE:DKL) .
Here are highlights from Wednesday’s Analyst Blog:
Buy 5 Top Oil Stocks Ahead of Crucial OPEC Meeting
On Sep 12, the Organization of the Petroleum Exporting Countries (OPEC) and its allies will meet in Abu Dhabi to assess production levels, following significant surge in U.S. oil exports. Crude oil prices are witnessing a rally since the beginning of September backed by Saudi Arabia’s commitment to cut production and Iraq’s decision to follow suit. Conservative demand estimate and overblown global recessionary concerns also boosted oil prices.
Crude Oil Prices Rally
Late in the evening on Sep 10, the American Petroleum Institute (API) reported that U.S. crude inventories plunged by 7.2 million barrels in the week ended Sep 6 to 421.9 million. Likewise, gasoline stocks fell by 4.5 million barrels.
Following the news, on Sep 11, U.S. benchmark of crude oil price, the West Texas Intermediate (WTI) futures increased 54 cents or 0.9% to $57.94 a barrel. Similarly, the global oil benchmark, the Brent Crude futures rose 51 cents or 0.6% to $62.89 a barrel. Both crude oil prices were the highest since Jul 31.
Crucial OPEC Meeting
On Sep 12, the OPEC and its allies will meet in Abu Dhabi to take a decision on oil production level as U.S. production is approaching 12.4 million barrels per day. U.S. oil production touched 12,123,000 barrels of oil per day (BOPD). It declined by 33,000 BOPD in June and is expected to decline more in July. However, these declines in oil production were mainly due to natural calamities.
The glut in global oil supply is creating downward pressure on oil prices. The 11-member OPEC led by Saudi Arabia and 10 allies led by Russia will discuss possible steps to restore and stabilize oil prices.
Moreover, at his speech at the World Energy Congress in Abu Dhabi, OPEC Secretary-General Mohammad Barkindo said that the organization’s previous estimate of oil demand for 2019 is likely to turn out conservative since fears of an immediate global recession are overblown.
A fresh round of trade negotiation between the United States and China will start from Oct 1. Additionally, several governments and central banks have either injected stimulus or are likely to do so this month.
Saudi Arabia Confirms Production Cut
On Sep 9, the new Saudi energy minister, Prince Abdulaziz bin Salman, who recently replaced Khalid al-Falih, reiterated the Middle-East oil behemoth’s pledge to abide by a global deal to cut oil production by 1.2 million barrels per day.
Notably, OPEC’s oil supply increased in August for the first time this year as higher level of production from Iraq and Nigeria outpaced output restraint by Saudi Arabia and shrinkage of oil export from Iran due to U.S. sanctions.
Meanwhile, on Sep 10, Thamer Ghadhban, oil minister of Iraq said that the second-largest oil producer of OPEC will comply with the cartel’s production cuts from this month after months of overproduction. In August, Iraq reported its highest oil production at 4.6 million barrels per day.
Our Top Picks
At this stage, investment in stocks engaged in exploration, production, refining and marketing of oil will be lucrative. We have narrowed down our search to five stocks with a Zacks Rank #2 (Buy). You can see Original post
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