November 30, 2021 7:20 am
After a very sharp surge since the summer, oil was hammered on Friday during the huge sell-off due to the Omicron variant. While the black gold topped $ 70 on Monday and recouped about half of Friday’s losses, if any company is right, this could be one of the last times to oil up for a while see this level. That bodes badly for consumers already plagued by soaring inflation.
A new and somewhat provocative report from analysts at JPMorgan is titled: “OPEC + ‘Show me the barrels’; $ 150 / barrel on the horizon as capacity shocks. ”This report argues that the price of oil is not only going up, it could potentially get much higher in the next two years:
We view long-term USD 80 / barrel Brent (real) as the marginal cost of providing a balanced market in 2024 and beyond. Taking into account our model of the true capacity of OPEC +, we expect the oil to rise to $ 125 / barrel in 2022 and to $ 150 / barrel in 2023.
While the chances are that the extreme pain for consumers may be in the beginning, the reality is that it makes sense to buy the big dividend-paying energy giants now as a hedge against a massive surge in 2022 and 2023.
We scoured our 24/7 Wall St database for the top Buy-rated dividend energy stocks from major Wall Street firms and found four that are cheap and have significant upside potential. We have focused on companies with a buy rating, but the important thing to remember is that no single analyst report should be used as the sole basis for making buy or sell decisions.
This is one of Europe’s leading integrated oil giants, and Goldman Sachs is very positive about the stock. BP PLC (NYSE: BP) operates in the energy business worldwide. It produces and trades in natural gas; offers biofuels; operates onshore and offshore wind and solar power generation facilities; and provides decarbonization solutions and services such as hydrogen and carbon capture, use and storage.
The company is also active in the convenience and mobility business, which manages the sales of fuels to wholesale and retail customers, convenience products, aviation fuels, and Castrol lubricants. It is involved in the refining, supply and trading of petroleum products as well as the operation of charging stations for electric vehicles. It also produces and refines oil and gas and invests in upstream, downstream and alternative energy companies, as well as in advanced mobility, bio and low-carbon products, carbon management, digital transformation, and energy and storage areas.
BP shares have a dividend yield of 4.83%. Goldman Sachs’ price target for domestic stocks is $ 45, compared to the consensus target of $ 35.22. The last trading day on Monday was reported at $ 26.18 per share.
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