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Three Ways To Make Money On Oil

A portion of the Conoco Phillips Woodriver Refinery, is shown inWoodriver, Ill. Tuesday, June 14, 2005.  OPEC agreed Wednesday, June 15, 2005,  to increase its production quota by half a million barrels a day in an effort to cool rising crude oil prices.   (AP Photo/James A. Finley)
James A. Finley
A portion of the Conoco Phillips Woodriver Refinery, is shown inWoodriver, Ill. Tuesday, June 14, 2005. OPEC agreed Wednesday, June 15, 2005, to increase its production quota by half a million barrels a day in an effort to cool rising crude oil prices. (AP Photo/James A. Finley)

How can you make money on the recent jump in oil prices? Pavel Molchanov, associate analyst with Raymond James, joined CNBC's Erin Burnett on "Street Signs" with three oil plays. Molchanov does not believe that this is a brief spike: “We’re believing that long-term we will see higher highs in oil.”

Molchanov’s first pick was Occidental Petrol. “They are a classic blue chip with key Middle Eastern assets,” he said. His price target is $67, up 30%.

Denbury Resources was Molchanov’s second pick. He said it is a unique oil production company that specializes in enhanced oil recovery; his price target for Denbury is $34, up 10%.

Molchanov’s third oil play was Parallel Petroleum, calling it a rapidly growing company, with 20% production growth. Molchanov’s price target for the firm is $25, up 10%. Parallel Petroleum takes proceeds from oil assets and reinvests them in natural gas.

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  • Co-anchor of CNBC's "Street Signs," Amanda Drury is based at the network's global headquarters in Englewood Cliffs, N.J.