Two weeks ago, InvestorPlace.com ran a story on five reasons why oil will rally again. Since then, West Texas Intermediate (WTI) — the benchmark for crude oil pricing in the United States — has steadily climbed about $5 per barrel.
Demand for oil is seasonal in nature, and summer tends to be a strong time of the year. I fail to see how with increasedseasonal demand, decreased supply due to tensions in the Middle East and North Africa, as well as a relentless surge in demand from emerging markets that is much faster than that from the developed world, the price of oil will see any meaningful correction here. Yes, corrections are possible, but they should be treated as buying opportunities en route to higher prices.
How high will oil prices go this summer? Well, do you think the unrest in Yemen and Bahrain will spill over into Saudi Arabia? And what are the chances that the Libyan situation will be resolved in the next couple of months? Given these global factors, coupled with the bullish seasonal and secular factors I outlined earlier, oil could go as high as $150 per barrel or more.
So let’s take a look at the best oil stocks to buy now: