If you’ve paid attention to anything I’ve said over the past few weeks, then you should know the oil market has seen a big boost.
Crude oil rallied above $70 a barrel for the first time in nearly three years!
And it’s giving oil producers the means to generate a lot of cash flow they can use to repay debt, drill more wells and, what we’re all probably here for… return money to shareholders via dividends and stock buybacks.
So in today’s video, I want to give my readers the most promising oil and gas stocks to trade as prices hit key benchmarks.
Before we jump feet first into the two oil and gas stocks to trade I want to show you, there’s something you need to understand…
This is all happening because the economy is burning off excess supply as demand attempts to recover from the COVID-19 pandemic.
In fact, the Organization of the Petroleum Exporting Countries (OPEC) said earlier this month that it would continue its current pace of returning output to the market. This should help offset near-term headwinds, like the outbreak in India… the world’s third-largest oil market.
So with OPEC bringing supplies back slowly, oil stocks could have more upside ahead as they cash in on higher prices.
And with interest rates trading lower and bonds higher, there’s been a major pullback in inflation-sensitive stocks.
So energy, basic materials, industrial and financial stocks are all pulling back.
And if the bounce I see in blue chips occurs, it’ll give us the chance to profit on oil and gas stocks over the next month — if not sooner.
If not, these two oil and gas stocks to trade are still sitting near their 50-day moving averages. So they do give us a low risk vs. reward scenario.
Check out my short video to get their names and let me know in the comments section below if there are any other oil and gas stocks you’ve added to your watchlist or considered trading recently.
Don’t forget to subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video!
P.S. Thanks to legendary trader Tom Busby finally breaking his silence, everyone now has the chance to grab winning trades and three-day weekends — every week!
Tom discovered a way to tune out all the noise in the stock market…
I’m talking about gains like 90% on RIOT… 147% on FCX… and even 232% on ORCL.
It’s a little “Tuesday morning tip” that tells him exactly which trades Wall Street could be pushing higher.
So in other words, it’s all of the stocks that could explode within the next 96 hours!