BP Sees Continued Strength in Worldwide Crude Oil Demand
BP plc’s BP CEO Bernard Looney told Bloomberg News that he expects global demand for crude oil to recover strongly and foresees the strength to last for a while.
According to Looney, there are evidences that clearly suggest that with crude demand rising, explorers and producers in U.S. shale resources will continue to keep their production in check. Even if the energy market experiences a new wave of coronavirus, the growth in worldwide oil demand will slow down but not stop, said Igor Sechin, CEO of Rosneft PJSC – the largest producer of oil in Russia.
The projections of solid demand recovery is being backed by the rolling out of coronavirus vaccines in a massive scale that is leading to a rebound in demand for oil in the United States, China and Europe.
Now, one may wonder that why U.S. shale producers are keeping their productions in check despite a significant recovery in crude prices. This is because upstream players are now focusing on shareholder returns and debt reductions rather than investing money in production.
Currently, BP carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space include Whiting Petroleum Corporation WLL, Callon Petroleum Company CPE and Oasis Petroleum Inc. OAS. All the stocks sport a Zacks Rank #1 (Strong Buy).
Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.
Callon Petroleum is expected to witness earnings growth of 129% in 2021.
Oasis Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.
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