Oil Consumption to Rise: Invest in Oil

With crude oil climbing back over $80 a barrel in the past several days many investors are speculating where it will head next. I for one have always been a strong promoter of oil stocks and am not going to stop now. Expect crude oil to continue to rise. Why? Well recent OPEC reports stated that energy demand will continue to increase throughout 2010. Global oil consumption could possibly rise to as much as 1.4 millions barrels a day. Crude oil prices will rely heavily on the global economic situation however I am optimistic that we will continue to see improvements within the economy. We have yet to see the surge in oil prices yet I think its coming soon. I believe oil is undervalued and consumption will only continue to rise. I expect demand to greatly increase in BRIC countries around the world. I speculate we will see oil rise in the coming weeks being supported by strong economic data. I think this surge will help lead to higher oil prices throughout 2010. Main point, invest in oil stocks. My favorite picks and why I like them. Read below:

Top Oil Stocks

ExxonMobil (XOM) - Expect XOM to see lots of new business now with BP’s problems. I think this is a good long-term anchor to any portfolio.

Chevron (CVX) - Good overall play as they have very low exposure to refining while holding a stellar exploration portfolio. With rising oil prices this stock is a no brainer. Chevron also posses a solid 4% dividend yield and is currently trading at around eight times earnings.

ConocoPhillips (COP) – Holds a strong array of natural gas positions which could be the future of energy after the recent series of events. Adding to this they are strong globally and posses many valuable assets that will strengthen the companies prospects.

PetroBras (PBR) – Love this stock however it has been the worst performing stock in Brail throughout the first half of the year due to capital problems and the BP Oil Spill. I feel this overhang has kept the stock low which presents a great buying opportunity as PBR continues to be under-valued when matched up against it’s peers. My gut feeling is once these few issues are washed away this stock will rise.

Suncor (SU) - Refineries and Oil Drillers such as Suncor should succeed as many have been hit hard unfairly due to the BP crisis. I think this stock will be trading at around $40 a year from now supported by a solid dividend makes it an attractive investment.