Analysts believe that large oil companies are in a sweet spot, despite the sell-off of their stocks in the beginning of the year.
The analyst Terreson said that even though there was a downward movement in the price of crude oil, because of the increase in supply, a number of factors are still supporting an upward movement in the price of stocks and oil-based products.
One of those factors is the integrated oil companies, which extract oil and produce fuel, and due to the fact that they lowered their capital costs they managed to increase revenue.
Investors should keep in mind that stocks of large oil companies are trading around a 25-year low and their dividend is around 5% which makes them a safe bet.
"We believe that in the moment we are in a sweet spot in the investment cycle for long positions of oil companies such as Exxon Mobil and Chevron, at least for the coming quarters."
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