3 Reasons Why Oil Stocks Make a Smart Investment in 2017

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When it comes to investments, natural resources never fail to make a grade. Among ample of resources, oil has remained one of the most important and valuable assets on the planet. It directly impacts a country’s economy. No doubt, oil stocks are a clear indicator of a country’s economic health.

I agree that the past three years were tough on the oil industry. Continuous degrading in oil price caused a brutal downfall. But rise and fall are part of this dynamic industry.

Oil prices seem to be much more stable in the current year, i.e., 2017 and are going to be stable for a few years to come. OPEC, Organization of Petroleum Exporting Countries, is making agreements to balance the market.

No doubt, 2017 could be one of the promising years to invest in oil stocks.

Working as a stock market analyst for more than 12 years and assisting customers in buying best stocks, the experience has led me to classify 3 reasons why oil stocks make a smart investment in the year 2017.

If you are an amateur in the stock market and want to invest in oil stocks, this blog will be constructive for you.

I hope that after reading this blog, readers will get few insights about investment in oil stock market.

Here we go:

#1. 2017 – Year to Drain Excess Stockpiles

Image Source: CNBC

Russia’s Energy Minister Alexander Novak, Saudi Arabia’s Energy Minister and OPEC conference president Khalid al-Falih, and OPEC Secretary General Mohammad Barkindo attended a meeting of the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC producing countries in Vienna, Austria. The meeting was held on May 25, 2017

As per stats and resources, OPEC signed two major agreements, one focusing on cutting output by 1.2 million barrels per day and other emphasizing reduction of the production by 558,000 barrels per day. These agreements have been signed to eliminate the excess of oil supply.

As per experts, as the plan moves as per the strategy, the global oil market and prices have taken a stabilized shape by mid-2017.

Thus, we can say investment in oil stocks is a sound proposal one should think of.

#2. 2017 – Year to Fuel Businesses

Image Source: money

No doubt, oil stocks have fueled businesses with billions of dollars in cash.

Whether it is dividend or distribution, generous profit has been the major reason why investors love to invest in the oil sector.

However, due to the downturn in the oil industry, oil stocks got a bit shattered, but the situation has been improving.

Many oil companies have announced that they have successfully reached a turning point and now are ready to bloom.

Some of the leading companies of United States have made few tough decisions to bear the crucial time of oil market and now positioned to grow again in the year 2017.

This is a positive sign for the oil industry. Isn’t it?

#3. 2017 – Year of Oil Demand Growth

Image Source: international energy agency

Image Source: international energy agency

Look at these charts of the year 2016. They are clearly indicating a gradual rise in oil supply and demand.

As per IEA stats, global oil demand in the year 2017 is expected to reach 97.4 million barrels per day.

Sure enough, growing oil demand worldwide is a positive sign to invest in oil stocks.

So, these are the 3 main reasons why oil stocks make a smart investment in the year 2017.

All the reasons mentioned above justify that investing in oil stocks in the year 2017 is an appealing proposition.

Needless to say, oil stocks in the coming year 2017 & 2018 will take the world by storm!

No wonder, the sector has still a lot of potential ahead.

To make your oil investment more fruitful, it is always advisable to take help from investment companies.

They are experts that acquire premium oil and gas properties and put these oils and gas assets for sale, develop and maintain the assets and assist customers in investing in the oil properties.

We would love to hear from you.

Share your experience and tell how oil stock investment has helped you.

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