Leon Cooperman is bullish on oil and has 20% of his portfolio in energy stocks

Published Mon, Apr 3 20239:28 AM EDT

Leon Cooperman said Monday oil prices are headed higher on the back of a demand comeback, boosting his energy stock picks. "I think world travel is going to come back, which will stimulate demand. China is going to come out of lockdown," Cooperman said CNBC's " Squawk Box ." "I think we're going to have to replenish the Strategic Petroleum Reserve." He said he has 20% of his portfolio in energy stocks. Oil prices soared as much as 8% Monday after OPEC+ announced a surprise output cut. The voluntary cuts, 1.16 million barrels per day, will start from May to end 2023, Saudi Arabia announced, saying it was a "precautionary measure" targeted toward stabilizing the oil market. U.S. West Texas Intermediate crude futures soared to around $80 a barrel, touching their highest level since Jan. 27. Brent crude futures last jumped 5% to $83.95 a barrel on the news. The energy sector pulled back this year following a stellar 2022. The S & P 500 grouping is down more than 5% this year after a near 60% rally last year. The Omega Family Office CEO said he agrees with Goldman Sachs head of commodities research Jeff Currie's view on commodities. Currie boosted his forecast on Brent crude to $95 per barrel following OPEC+'s move. The widely followed investor said his two favorite stocks in the sector are Canadian oil and gas producers Paramount Resources and Tourmaline Oil . "It's growing production at 15%," Cooperman said on Tourmaline Oil. "And they're making a lot of money for every barrel of oil they produce up here. They're generating about $2 million dollars a day of free cash flow." Paramount Resources shares are up more than 3% this year, while Tourmaline Oil saw its stock fall more than 17%. Both stocks are listed on Toronto Stock Exchange. Cooperman also owns Devon Energy and Pioneer Natural Resources in the industry. On the overall market, Cooperman said he maintains his cautious view as "inappropriate" fiscal and monetary policies will cause a severe downturn in the economy. Meanwhile, he believes the recent banking crisis will have long term consequences.