Oil Stocks- Morgan Stanley improves Western due to rising oil prices and predicts a 40% gain
Oil pump under blue sky, beam pumping unit in oilfield, oil pump and water reflection
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High oil prices and lower capital expenditures should lead oil stocks to ditch cash, and investors should add some winners from this sector, according to Morgan Stanley.
While energy prices fell on Thursday amid widespread commodity weakness, benchmark oil prices in the US and Europe are still up around 80% over the past year. The industry has seen increased demand and declining reserves as economies reopen.
Analyst Devin McDermott shuffled his ratings for energy stocks on Friday, raising Occidental Petroleum to equal weight overweight and Marathon Oil to equal weight underweight. McDermott said in a note to clients that these changes were going to have greater exposure to high oil prices in particular.