Investing

Where Should Energy Investors Be Looking Today?

Austin Smith

Published: April 17, 2024 3:30 pm

In today’s episode of the 24/7 Wall St Podcast Lee Jackson and Doug McIntyre discuss where energy investors should be looking today, and what discuss scenarios whether oil stays rangebound around $90 a barrel, or if it pops over $110 a barrel.

Transcript:

Now, if you’re an investor right now, let’s say you’ve got a full deck, commodities, stocks, gold. Where should you be looking right now if you think, let’s start with the first part. It’s range bound, 90 to 95, not going to move much. Where do you go with investing dollars? In energy, I think you stick with the big boys. And, you know, you’re talking about Chevron, Exxon, the real big players. If you want to buy international, you can buy Total, which is the French giant, or you can buy BP, which has exposure all over the world. But there is, you know, you can also start looking. There’s a huge… merger activity going on with Exxon and with Chevron. So perhaps some of the other companies that could be in the sights of a major like APA, which was the old Apache or somebody like that, that could be a good place to look.

If we go above, let’s say 110, there’s going to be what everybody calls a flight to safety. Where would you look then? Again, it could be stocks, bonds, commodities, gold. If you start to see 110, 120, and maybe not a lot of reason it goes down, where do you go? Well, I’m keeping a real close eye on the 10-year bond because it’s getting close to a 470 yield, which is the highest since 2007. And I would submit to you that if it hits a 5% yield, that would be the place to be, the 10-year treasury.