Oil climbed toward $87 Monday on hopes that the US economy is indeed recovering. Should investors get on board? Shawn Reynolds, a Morningstar 5-star-rated portfolio manager at Van Eck Global, shared his outlook and stock picks with CNBC.
"We've been believers in a slow-burning energy crisis for over a decade," he said.
"We're really not surprised to see oil above $85 and heading towards 90."
Reynolds, who also serves as senior analyst for Van Eck Global Hard Assets Fund, believes the emerging markets may encounter "some bumps on the road," but have nowhere to go but up.
"A lot of people understand that the United States is the largest consumer of crude oil. Most people understand that China is the second-largest and the Middle East the third."
But he said there is a mathematical principle many are missing:
"China and the Middle East together consume almost the same as the U.S. — but on a much different growth path."
Longer-term, Reynolds sees oil "probably creeping toward 90, 95 by the end of the year."
Reynolds' Energy Picks:
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Disclosure information was not available for Reynolds or his company.