Oil-Services Stocks Gain From Higher Crude Prices
The current surge in oil prices is good news for some oil services and equipment stocks, according to Terri Campbell, Eastern Investment Advisors Managing Director.
Cameron International and Weatherford International are two that Campbell paticularly likes.
"There's at least 20% upside to these stocks," Campbell said on "Squawk Box." "They are getting pricing power, which is a huge benefit for them, and they have really high capacity rates and pretty high demand rates," she said.
U.S. oil companies are not the only ones requesting oil field services and equipment, she added. Foreign oil giants in Russia and Saudi Arabia are spending more and more money on products that will aid them in finding and drilling more oil.
Campbell said that this has been a heavy maintenance season for the refiners, both in the United States and in Europe, what with the "summer driving season" around the corner.
Imports from Europe are also lighter this year, causing the inventories to be down, Campbell said. However, she expects that there will be relief on the inventory side, as we are seeing more imports from Europe.