COM - Oil E&P Stocks Breakout Riding The IEO Energy Train
2024-04-04 21:47:08 ET
Summary
- Global oil prices are rising due to resiliency in the domestic economy and optimism about China's recovery.
- The iShares U.S. Oil & Gas Exploration & Production ETF is recommended as a buy, with an attractive valuation and strong technicals.
- IEO has a concentrated equity mix and exposure to cyclical small and mid-cap equities, but its low P/E ratio and strong earnings growth make it an attractive investment.
- I highlight key price levels to monitor as Q2 progresses.
Global oil prices have made a stealthy move higher this year . WTI now trades around the $85 mark while Brent hovers just shy of $90. While there were fears of a bearish supply/demand balance heading into the year, resiliency in the domestic economy and growing optimism about China’s recovery have put upside demand pressure on energy commodities. ...
Oil E&P Stocks Breakout, Riding The IEO Energy Train