Oil stocks to turn attractive on positive trends in crude oil

Published January 12th, 2012 - 05:25 GMT
The International Energy Agency (IEA) currently has a plan to release up to 14 million barrels per day (bpd) of oil stored in the United States, Europe, Japan and other importers
The International Energy Agency (IEA) currently has a plan to release up to 14 million barrels per day (bpd) of oil stored in the United States, Europe, Japan and other importers

Oil stocks would be an attractive bet for investors as price of crude oil is bound to rise in 2012 according to Absolute Wealth. Investors should keenly review the stock prices of Chevron British Petroleum Exxon and Royal Dutch Shell Oil.

Oil stocks are also being challenged by alternative energy public offerings which are coming out by the hundreds such as First Solar Holding LLC Evergreen Solar INC and DayStar Technologies INC. Chevron Corp (NYSE: Chev) shares have fallen to$107.77 levels as it has issued a warning to investors that Q4 earnings esults to be released later in the month would be significantly lower than Q2. Exxon Mobil Corp (NYSE: XOM) is down 0.75% at $85.78 while Royal Dutch Shell (NYSE:RDS ) has weakened 3.54% to $71.71.

The price of gas is of course connected to crude oil prices and the financial world currently has its eyes on Iran as it threatens to close the Hormuz Strait the waterway where most of the oil of the world must pass through via sea tankers. The United States has promised to keep the Strait open which is another way of saying that they will use military force if Iran attempts to shut down the world's oil supply. Energy stocks investors have their eyes on the NYMEX oil price, the oil price per barrel and the price of gas as well as important issues like the Hormuz Strait dispute which can drastically affect the market.

The International Energy Agency (IEA) currently has a plan to release up to 14 million barrels per day (bpd) of oil stored in the United States, Europe, Japan and other importers if Iran acts on its threats and closes the Hormuz Strait. This would start to stabilize the price of oil but would not be a permanent solution. "My Energy investments are centered around Royal Dutch Shell (RDS.A) Exxon Mobil (XOM) and Halliburton (HAL) Shell offers a generous yield Exxon plays to the boom in natural gas and Halliburton is a beaten down favorite to capitalize on the need for energy services especially in North America according to Ray Merola in Seeking Alpha. I also like Energy Transfer Partners (ETP) a pipeline MLP that offers a generous 7.5 percent distribution yield and focuses upon the Texas natural gas/shale gas infrastructure.


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