Oil Stocks: Tropical Storm Francine Brings on the Bulls

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Totalenergies SE Notizia

Exxon Mobil Corp,Crude Oil WTI Futures,Sunoco LP

Stocks Analysis by ValueWalk (Dave Kovaleski) covering: TotalEnergies SE, Exxon Mobil Corp, Crude Oil WTI Futures, Sunoco LP. Read ValueWalk (Dave Kovaleski)'s latest article on Investing.com

Oil prices had been declining recently, falling to $65 per barrel earlier this week and reaching their lowest level since 2021. The decline was due to several factors, including a pullback on demand from China and an expansion of production in the U.S., among other factors.

That supply constraint, in turn, could lead to oil prices moving higher over the next few months. UBS analysts said oil prices could move back up over $80 per barrel, per Reuters.The spike in oil prices sparked a rally among oil stocks and ETFs Thursday. One of the biggest movers among ETFs is the SPDR® S&P Oil & Gas Equipment & Services ETF gained 2.4% on the day, rising to more than $53 per share. It was a much-needed lift for a stock that is down 11% this year.

BP stock is also cheap with a lot of upside. The stock has a P/E ratio of just 6 and a median price target of $42 per share, which represents 33% growth.

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