Back to top

Image: Bigstock

BP Sees Continued Strength in Worldwide Crude Oil Demand

Read MoreHide Full Article

BP plc’s (BP - Free Report) CEO Bernard Looney told Bloomberg News that he expects global demand for crude oil to recover strongly and foresees the strength to last for a while.

According to Looney, there are evidences that clearly suggest that with crude demand rising, explorers and producers in U.S. shale resources will continue to keep their production in check. Even if the energy market experiences a new wave of coronavirus, the growth in worldwide oil demand will slow down but not stop, said Igor Sechin, CEO of Rosneft PJSC – the largest producer of oil in Russia.

The projections of solid demand recovery is being backed by the rolling out of coronavirus vaccines in a massive scale that is leading to a rebound in demand for oil in the United States, China and Europe.  

Now, one may wonder that why U.S. shale producers are keeping their productions in check despite a significant recovery in crude prices. This is because upstream players are now focusing on shareholder returns and debt reductions rather than investing money in production.

Currently, BP carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space include Whiting Petroleum Corporation (WLL - Free Report) , Callon Petroleum Company (CPE - Free Report) and Oasis Petroleum Inc. (OAS - Free Report) . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.

Callon Petroleum is expected to witness earnings growth of 129% in 2021.

Oasis Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.

Infrastructure Stock Boom to Sweep America

A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.

The only question is “Will you get into the right stocks early when their growth potential is greatest?

Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.

Download FREE: How to Profit from Trillions on Spending for Infrastructure >>