5 Top Oil Stocks To Buy As Middle East Tensions Escalate

Additionally, OPEC said on May 14 that demand for crude would defy estimates in 2019. Supplies from rivals of the oil cartel, such as America’s shale producers, hint at tighter global supplies. The situation will worsen if OPEC refused to raise production further. U.S. sanctions against Iran and Venezuela are already weighing on global crude supplies.

Our Choices

Following Tuesday’s attacks, the situation in the Middle East remains tense. The primary trigger for these disturbances is the Trump administration’s decision to tighten sanctions against Iran. Similar sanctions against Venezuela have also tightened global crude supplies.

Meanwhile, OPEC expects crude demand to exceed expectations this year. Also, market watchers continue to believe that the United States and China will conclude a trade agreement. Adding oil stocks to your portfolio looks prudent. However, picking winning stocks may be difficult.

This is where our VGM Score comes in. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three scores. Such a score allows you to eliminate the negative aspects of stocks and select winners. However, it is important to keep in mind that each Style Score will carry a different weight while arriving at a VGM Score. 

We have narrowed down our search to the following stocks, each of which has a Zacks Rank #1 (Strong Buy) and a good VGM Score.

Bonanza Creek Energy, Inc. (BCEI - Free Report) is engaged in the acquisition, exploration, and development of onshore oil and natural gas properties in the United States. 

Bonanza Creek Energy has a VGM Score of A. The company’s expected earnings growth for the current year is 30.4%. The Zacks Consensus Estimate for the current year has improved by 26.4% over the last 30 days.

Oasis Midstream Partners LP (OMP - Free Report) is a master limited partnership company which owns, develops, operate and acquires a diversified portfolio of midstream assets primarily in North America.

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