10 Great Stocks To Own Because Oil Prices Have Surged: Goldman Sachs

The latest OPEC standoff that is keeping oil prices at lofty levels opens the door for investors to potentially profit from several oil-related stocks, according to Goldman Sachs energy analyst Neil Mehta.

Mehta outlined 10 oil stocks he is bullish on in a new piece of research on Tuesday: (1) Occidental Petroleum (OCY); (2) ExxonMobil (XOM); (3) Ovintiv (OVV); (4) Diamondback Energy (FANG); (5) ConocoPhillips (COP); (6) EQT Corporation (EQT); (7) Pioneer Natural Resources (PXD); (8) Devon Energy (DVN); (9) Hess (HES); and (10) Schlumberger (SLB).

The analyst puts the 10 stocks into a few key investment themes:

• Turnaround stories: OCY; XOM; OVV
• M&A winners: FANG; COP; EQT; PXD; DVN
• Company-specific stories: HES; SLB

“We project Brent will sustain $75-$80/b over the next 18 months in our financial models, enabling deleveraging and improved returns,” Mehta says of his underlying thesis on the aforementioned oil names.

At more than $74.75 a barrel currently, Brent crude oil prices are trading at levels not seen since fall 2018. The price of Brent crude is up about 75% over the past year.

Gains in the oil patch in recent months have been fueled by indications of strong demand amid economic rebounds meeting low levels of supply. The Energy Information Administration (EIA) reported that U.S. crude oil inventories fell by 6.7 million barrels for the week ended June 25.

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Source: Yahoo Finance