Could Oil Return to $120 a Barrel? 3 Oil Stocks to Buy if Crude Prices Surge Again
Oil prices have cooled off considerably over the past few months. Crude was recently down around $90 a barrel, well off its peak of over $120 a barrel following Russia's invasion of Ukraine. The main factor weighing on crude prices is concerns the global economy is slowing down, which could dent oil demand.
However, Goldman Sachs analyst Jeff Currie threw cold water on that idea. He believes that oil prices will return to $120 a barrel as energy shortages start to impact the oil market. Here are three oil stocks to buy if you want to cash in on the potential surge in crude prices that Currie sees ahead.
Devon Energy (NYSE: DVN) initially thought it would generate $5 billion in free cash flow this year, assuming crude prices averaged $85 a barrel. It now expects to produce $6.5 billion of free cash, driven by improving production and higher oil prices, banking on $95 crude for the rest of this year. Its free cash flow would be even higher if Currie is right that oil is heading back to $120 a barrel.
Source Fool.com
