Advertisement

The Zacks Analyst Blog Highlights: RGC Resources, Hess and Marathon Oil

For Immediate Release

Chicago, IL – February 21, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: RGC Resources, Inc. RGCO, Hess Corp. HES and Marathon Oil Corp. MRO.

Here are highlights from Thursday’s Analyst Blog:

3 Stocks to Play Oil’s Sharp Upward Movement

Global oil demand witnessed trying times recently due to the Coronavirus pandemic that put China on lockdown and sent ripples of distress through financial markets. Rising tensions over oil supply in the South American and African regions also induced volatility in global oil prices.

However, recent developments gave oil prices a rather sharp uptick, prompting oil futures to hit the highest settlement in almost three weeks on Feb 19.

West Texas Intermediate crude for March delivery rose $1.24 (2.4%) to settle at $53.29 a barrel on the New York Mercantile Exchange after closing Tuesday’s session witnessing no change. April Brent crude gained $1.37 (also 2.4%) to reach $59.12 a barrel on ICE Futures Europe.

China’s Rate Cut to Boost Oil Demand

Of the many reasons that drove oil prices is China cutting its loan prime rate (LPR) in a bid to boost its economy despite the deadly Coronavirus outbreak. The 1-year LPR was lowered by 10 basis points and the 5-year LPR witnessed a 5 basis points reduction.

This development is expected to raise demand for oil in the Asian country, which has been weak because of the prevalent pandemic. After all, China is the world’s second biggest oil consumer and any disruption in the country’s demand affects global oil prices.

Will US Sanction of Russian Oil Giant Hurt Crude Supply?

On Feb 18, the United States imposed tough economic sanctions on the Russian company Rosneft Trading, a subsidiary of the Russian state-controlled Rosneft Oil company, that operates in Venezuela and kept President Nicolás Maduro’s government buoyant.

According to The New York Times, the company exports about two-thirds of the country’s oil, an act Treasury Secretary Steven Mnuchin coined as the “looting of Venezuela’s oil assets by the corrupt Maduro regime.”

Although the sanctions aren’t expected to affect the global financial markets much but the repercussions could deal a heavy blow to Venezuela’s economy. The country’s oil exports have been in the line of fire ever since the Trump administration began a campaign in 2019 to put pressure on Maduro for quitting his post, following his broadly disputed re-election in May 2018.

Given that China, which is the world’s largest crude oil importer, is already providing a stimulus to its economy, oil demand in the country should rebound in the near future. In such a scenario, trimming Venezuela’s 700,000 barrels of daily oil input could enable the country make its presence felt in the global oil market.

Will OPEC+ Slash Oil Production Ahead?

The Organization of the Petroleum Exporting Countries (OPEC) along with non-OPEC members (collectively known as OPEC+) is set to meet in Vienna on Mar 6, per the confirmation to Reuters by Russia’s deputy energy minister Pavel Sorokin.

Since Jan 1, 2020, OPEC+ instated an agreement to cut its oil production by 1.7 million barrels per day (bpd) while Saudi Arabia also agreed to decrease production by 400,000 bpd. If the OPEC+ follows the oil production cuts, oil prices could continue to scale higher.

Libyan Oil Ports Close Amid Conflict

The unrest in Libya brought about harrowing times for the country and its oil reserves. As Libya’s combatants prepare themselves for a long conflict amid the arrival of advanced foreign artillery and fighters, eastern factions in the country sealed its oil ports while rival alliances fight over revenues from Africa’s largest petroleum reserves, per Reuters.

This clash to control the country’s oil wealth not only threatens to fuel its raging unrest but also limit the export of oil, thus impacting oil revenues and supply alike.

As Oil Prices Soar, These 3 Stocks Are Poised to Gain

We therefore hand-picked three oil stocks that are well-positioned to gain ahead on the back of the aforementioned factors, all stocks carrying a Zacks Rank #1 (Strong Buy) or 2 (Buy).

RGC Resources, Inc.is an energy services company. It markets and distributes natural gas to residential, commercial and industrial customers in Roanoke, VA, and in the localities nearby. The Zacks Consensus Estimate for RGC Resources’ current-year earnings has moved 9.7% north in the past 60 days. The company sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Hess Corp.is an exploration and production company. It explores, develops, produces, transports and markets crude oil, natural gas liquids and natural gas, etc. The Zacks Consensus Estimate for Hess’ current-year earnings has moved 84.6% north in the past 60 days. The company carries a Zacks Rank #2.

Marathon Oil Corp.is an energy company engaged in the exploration, production and marketing of crude oil and condensate, natural gas liquids and natural gas etc. The Zacks Consensus Estimate for Marathon Oil’s current-year earnings has moved 76.9% north in the past 60 days. The company carries a Zacks Rank of 2.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Click to get this free report Marathon Oil Corporation (MRO) : Free Stock Analysis Report Hess Corporation (HES) : Free Stock Analysis Report RGC Resources Inc. (RGCO) : Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research