The oil services sector was the top gainer in the S&P for the first half of 2009, and Stephen Gengaro, managing director of Jefferies, said the sector will continue to be a good bet in the second half.
“We do think long-term is very positive for crude oil,” Gengaro told CNBC. “Short-term, crude is going to act as a barometer for views on the economy over the next several months.”
Gengaro said he is bullish on the oil services and equipment companies as emerging countries such as China and India will start to show an increase in oil demand.
“You have 2.4 billion people in China and India who are going through an industrialization like the U.S. went through in the 1920s and 30s,” he said. “That’s going to drive a lot of oil demand in the next decade.”
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Gengaro does not own shares from any of the companies mentioned above.
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