Brent crude oil is currently around $79 per barrel while West Texas Intermediate crude is at $73, as of this writing. Barclays anticipates Brent to average $92 per barrel in 2023 and for West Texas Intermediate crude to be $87 per barrel. The benchmarks are expected to rise in 2024 to $97 and $92, respectively. Furthermore, energy stocks are in a long-term uptrend. The iShares U.S. Energy ETF (IYE) has been steadily climbing higher since the end of 2020. The top holdings in the exchange-traded fund (ETF) are ExxonMobil (XOM), Chevron (CVX) and ConocoPhillips (COP). With demand for energy not likely to weaken in the future, this ETF should continue to move higher. Lastly, energy stocks often pay big dividends. Major oil companies, like Exxon, pay more than 3%. Pipeline companies, like Plains All American (PAA), often sport yields between 6% and 8%. And there are other energy companies whose yields even reach double digits. Despite an increase in solar, wind and other sustainable power sources, oil and gas are still going to be needed for a long time to meet the world's energy needs. For growth and income, I believe energy stocks should be an important part of your portfolio. Good investing, Marc YOUR ACTION PLAN If you're looking for a safer way to profit from the oil boom without buying regular oil and gas stocks, look no further. Today I'll show you how to collect monthly income directly from the Permian Basin. Bloomberg reports that the Permian is "uniquely positioned to become the world's most important growth engine for oil production." While it's the largest oil basin in the United States, only 37% of its wells have been tapped. So the lion's share of its growth is ahead of it. And you can get your share of this growth today. For more info on my #1 Oil and Gas Royalty for 2023, click here now. |
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