Robert Morris, oil and gas analyst at Banc of America Securities, told CNBC’s “Morning Call” that major oil companies such as Exxon-Mobil, Chevron and ConocoPhillips are still good investments.
“If you look at the upstream sector of the business, I think there’s still very good value,” Morris said. “If you look at what oil and gas stocks are reflecting right now, I think the stocks reflect less than $50 oil, yet oil is close to $65 a barrel today and natural gas is trading above $7.50. From a value perspective looking long-term, there’s still a lot of opportunity here.”
He said refinery outages have tightened gasoline supplies ahead of the summer driving season.