Buy These 2 Oilfield Services Stocks for Over 40% Upside Potential, Says Analyst

Buy These 2 Oilfield Services Stocks for Over 40% Upside Potential, Says Analyst

Yogi Bera would remind us that predictions are difficult, especially about the future – and that pearl of wisdom is more relevant than ever in today’s oil markets. As a rough proxy for the price of crude, gasoline prices at the pump pulled back this summer, and are starting to head back up now. The latest upward pressure on oil came from Saudi Arabia, which announced a 2 million barrel per day cut in OPEC’s production.

But that was only one factor. Most of the oil market is getting pushed around by unpredictable forces, and OPEC’s role is hardly the largest. The Middle East is chronically unstable, with unrest in Iran and ongoing conflicts in Iraq and Syria; Western nations are sanctioning Russia in response to the invasion of Ukraine; supply chain issues, including availability of tankers, continue to disrupt trading patterns; and the global economy, facing recessionary pressures, is increasingly vulnerable to high inflation, which in turn is driven in large part by energy prices.

It's enough to make your head spin. But if you try to predict where prices will go, it’s better to bet up than down right now. Global demand for fossil fuels, especially oil and gas, continues to be robust – and as long that holds, there will continue to be some upward pressure on oil prices.