A number of energy names such as ConocoPhillips and Apache hit new highs Monday. What does that mean for the energy sector going forward? Pavel Molchanov, associate analyst for E&P at Raymond James and Philip Weiss, senior energy analyst at Argus Research Company shared their outlooks.
“The weakness in the dollar is a key factor that’s been pushing oil prices higher,” Weiss told CNBC Monday. “Also inventories, while still high, have fallen from the levels they were at previously and there’s belief that demand is going to grow at a little bit faster pace than they were at and that’s pushing prices as well.”
Weiss’ picks include Devon Energy and ConocoPhillips .
In the meantime, Molchanov said investors should focus on companies that have an overweight position in oil and an underweight position in natural gas such as Hess .
“A lot of investors tend to think about oil and gas interchangeably—They are completely disconnected,” explained Molchanov. “We’re seeing natural gas not far from multi-year lows while oil’s at 52-week highs.”
Scorecard—What They Said:
- Molchanov and Weiss' Previous Appearances on CNBC (Aug. 9, 2010)
More Market Intelligence:
- Schork: Oil's 'Clear Path' to $95?
- Energy and Utilities—What Stock Pickers Are Buying Now
- 'Buy' and 'Sell' These Sectors Now: Strategist
CNBC Data Pages:
Weiss does not own shares of COP or DVN.
Molchanov owns shares of CVX. In addition, Raymond James received non-investment banking securities-related compensation from MUR within the past 12 months.