Crofton favors Whiting Petroleum Corp, Hess Corporation, ConocoPhillips, Chevron and ExxonMobil, large diversified players with global holdings and companies that invest in shale and natural gas assets.
Crofton’s views are at odds with analysts who say that oil will decline for the rest of 2012 on poor demand as the global economy remains moribund. Addison Armstrong of Tradition Energy, for one, lowered his forecast by 10 percent on Monday and now expects oil, which averaged $97.25 a barrel through mid-July, to average only $93 for the year, down from his original view of $103.
Beyond weak demand, a flood of supply over the next two years will keep oil prices soft even as geopolitical events in the Middle East keeps prices volatile, Yudee Chang, Principal and Chief Advisor of ACE Investment Strategists, a trading and fund management firm based in Virginia, U.S., told CNBC earlier this week. He expects oil to fall “below or around $50 per barrel” over the next two years.
Sean Hyman, Editor of investment newsletter Ultimate Wealth Report, on the other hand, agrees with Crofton’s view that oil stocks need to be part of any investor’s portfolio.Page 2 of 3 | Prev Page | Next Page