BP CEO Bernard Looney told Bloomberg News that he expects a significant rebound in global crude oil demand and predicts that growth will last for some time.
Looney said there is evidence that clearly indicates that as demand for crude oil rises, US shale researchers and producers will continue to control their production. Even if the energy market experiences a new wave of coronavirus, the growth in global oil demand will slow but will not stop, said Igor Sechin, CEO of Rosneft, Russia’s largest oil producer.
Predictions of a sustained recovery in demand are underpinned by massive deployment of coronavirus vaccines, leading to a rebound in oil demand in the United States, China and Europe.
Now one may wonder why US shale producers are keeping their production in check despite a significant rebound in crude oil prices. This is because mining players are now focusing on shareholder returns and debt reduction rather than investing money in production.
BP is currently rank 3 Zacks (Hold). Meanwhile, several top players in the energy space include Whiting Petroleum Corporation WLL, Callon Petroleum Company CPE, and Oasis Petroleum Inc. OAS. All stocks are rated Zacks # 1 (Strong Buy).
Over the past 30 days, Whiting Petroleum has seen an upward revision of its 2021 profit forecasts.
Callon Petroleum’s revenue is expected to grow 129% in 2021.
Oasis Petroleum has witnessed an upward revision of its 2021 profit forecasts over the past 30 days.
Infrastructure stocks boom to sweep America
There will soon be a massive push to rebuild the crumbling US infrastructure. It’s bipartisan, urgent and inevitable. Trillions will be spent. Good luck will be created.
The only question is: “Can you get into the right stocks earlier, when their upside potential is at its maximum?”