BP sees continued strength in global crude oil demand
BP plcBP CEO Bernard Looney told Bloomberg News he expects a strong recovery in global demand for crude oil and expects the force to last for some time.
According to Looney, there is evidence that clearly suggests that with increased demand for crude oil, U.S. explorers and producers of shale resources will continue to control their production. Even if the energy market experiences a new wave of coronavirus, the growth in global demand for oil will slow but not stop, said Igor Sechin, CEO of Rosneft PJSC – the largest oil producer in Russia.
Projections of a strong recovery in demand are underpinned by the massive rollout of coronavirus vaccines which is leading to a rebound in oil demand in the United States, China and Europe.
Now, one can wonder why American shale producers are keeping their production under control despite a significant recovery in crude prices. Indeed, upstream actors are now focusing on shareholder return and debt reduction rather than investing money in production.
BP plc price
BP plc price | BP plc quote
Currently, BP wears a Zacks Rank # 3 (Hold). Meanwhile, a few higher ranked players in the energy arena include Whiting Petroleum Corporation WLL, Callon Petroleum Company CPE, and Oasis Petroleum Inc. OAS. All stocks have a Zacks rank 1 (strong buy). You can see The full list of today’s Zacks # 1 Rank stocks here.
Whiting Petroleum has seen upward revisions to earnings estimates for 2021 in the past 30 days.
Callon Petroleum is expected to experience 129% profit growth in 2021.
Oasis Petroleum has seen upward revisions to earnings estimates for 2021 over the past 30 days.
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