PXD - 3 Oil Stocks to Buy as Crude Crosses $90 (and Barrels Toward $100)
2023-09-21 08:02:00 ET
Oil prices have been stuck in a rut for most of the past year, bouncing between $65 and $80 per barrel. However, the cost of crude oil recently broke out of that range, soaring into the low $90s. It could have further to run in the coming months.
Surging oil prices will supply producers with more cash flow. Some of them plan to return the bulk of their oil-fueled windfalls to shareholders. That makes them great oil stocks to buy as oil prices rally. Pioneer Natural Resources (NYSE: PXD) , Devon Energy (NYSE: DVN) , and Marathon Oil (NYSE: MRO) stand out from the crowd as the top oil stocks to buy because their shares are still down sharply despite the rebound in crude prices.
The oil market is playing out exactly as Pioneer Natural Resources expected. The oil company's CEO, Scott Sheffield, laid out his bull case for crude on their second-quarter conference call. He stated that Saudi Arabia's energy minister wanted to stabilize prices at $90 or above. Because of that, he believed the country would extend its production cuts through the end of the year, which it recently did. That move, along with other catalysts, is "supportive for oil pricing in the $80 to $100 range for the remainder of '23 and through '24 on," according to Sheffield.
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3 Oil Stocks to Buy as Crude Crosses $90 (and Barrels Toward $100)