Markets are down today, and a series of related factors is exerting pressure. First, investors are concerned about a possible resurgence in the rate of inflation, which is directly linked to the second fear. This fear arises from rising oil prices, driven by the Russian-Saudi agreement to extend their oil production cuts until December of this year. Finally, with oil prices approaching $90 per barrel, the cost of gasoline is rising in the US markets, even though the summer driving season has come to an end.
Higher gas prices directly contribute to inflation. According to the latest data from AAA, the national average price for a gallon of regular unleaded reached $3.80 on September 6, surpassing last year’s high price and earning the title of the second-highest nationwide average gasoline price. As gas prices keep climbing, it’s likely that the Federal Reserve will face heightened pressure to consider further rate hikes, thereby increasing the risk of a recession.
Every shift in market conditions presents opportunities for investors, whether the markets rise or fall. With crude oil prices on the rise and gas prices increasing, oil stocks are positioned for potential gains.
Wall Street analysts have taken notice and are tagging some of the market’s largest oil companies as ‘Buys.’ Let’s dive in and explore these companies, along with insights from the analysts.
We’ll start with ConocoPhillips, one of the industry’s giants. The company boasts a market cap of over $147 billion and consistently ranks among the largest independent exploration and production companies in the oil sector, based on a combination of proven reserves and known production. ConocoPhillips operates in 13 countries and employs a workforce of over 9,700.
This solid foundation positions ConocoPhillips as an oil giant capable of weathering a volatile economic landscape. In its last quarter, ConocoPhillips generated over 1,800 thousand barrels of oil equivalent per day (Mboe/d), compared to just under 1,700 barrels per day in the 2Q22 period. Year to date, as of the…