Now is the time to take a look at oil tanker stocks, said Omar Nokta, head of research for marine transport at Dahlman Rose. He shared his stock picks with investors.
“We are very excited about the prospect for the oil tanker market this year,” Nokta told CNBC.
“They got hit pretty bad and the big reason is that there was a lack of OPEC volumes.”
Nokta said OPEC is likely to boost output on higher oil demand and limited supply this year.
Nokta also has a positive outlook for offshore drilling companies.
“You have oil prices that have improved off the bottom,” he said. “Natural gas has been getting better and we’re seeing E&P* companies spending more money now, and that’s a huge positive.”
*(exploration & production.)
“We’re seeing activities pick up from the bottom and they’re going to bring back rigs after they’ve seen idle time last year," he added.
Nordic American Tanker
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Nokta does not own shares of FRO, OSG or NAT.