Oil prices are hovering close to their peak levels since April 2023. This increase was prompted by inventory data indicating strong demand from the largest global fuel consumer, the US.
Therefore, investors could consider investing in quality oil stocks BP p.l.c. (BP – Get Rating), Petróleo Brasileiro S.A. – Petrobras (PBR – Get Rating), and Sasol Limited (SSL – Get Rating), which are currently on an upward trajectory.
U.S. crude inventories fell by 15.4 million barrels in the week ended July 28, 2023, according to market sources citing American Petroleum Institute figures, compared with analysts’ estimates for a drop of 1.37 million barrels.
Oil prices have rallied to a three-month high this week, above $85 a barrel for Brent crude, as tighter supply and rising demand outweigh concerns that interest rate hikes and stubborn inflation could hit economic growth.
Moreover, the upcoming panel meeting on Friday is expected to see OPEC+ maintain its current oil output policy, according to six sources within OPEC+. At its last policy meeting in June, OPEC+ agreed on a broad deal to limit supply into 2024, and Saudi Arabia pledged a voluntary production cut for July that it has since extended to include August.
Furthermore, Deloitte’s latest forecast predicts a modest increase in oil prices in the coming months due to supply cuts and robust demand. Also, the summer driving season, spanning the interval between the U.S. Memorial Day and Labor Day holidays, consistently stimulates higher fuel demand and elevates pump prices, as individuals across North America travel the roads to relish the warmer climate.
Here are the three stocks mentioned above:
BP p.l.c. (BP – Get Rating)
Headquartered in London, United Kingdom, BP engages in the production of natural gas and integrated gas and power, trading of gas, operation of onshore and offshore wind power, and hydrogen and carbon capture and storage facilities. The company operates through…
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