I have given you the best Norwegian sector Seafood stocks. These stocks have rallied for years and this year a return of more than 50%
This time around I will focus on oil stocks. While been under the radar cause of a quite low oil price around $50. The industry has had more of a rally since the oil price bottomed out below $30 in January.
You all have now heard of the new OPEC oil deal of last week. This has given new attention to the sector. Oil stocks rallied up to and post deal.
As you can see the Norwegian oil sector has performed since January. The index up almost 30% this year. I started paying attention to this index in May, the index was up 10% under the radar for most investors.
The OPEC deal to cut production, the first cut deal since 2008 may be a big gamechanger for the industry. They cut now and will have a new meeting in half a year.
Even the non member Russia has agreed on cutting 300.000 barrels a day.
Now attention is given to the American oil industry and the oil production to pick up due to higher oil price. Some feel this will somewhat stop the price from escalating.
My take is higher oil prices is good for all stocks within the industry. My advice will be to focus on sectors in the industry starting to rally more than others.
When it comes to the US oil production and prices. My opinion must be cut in OPEC oil production is good for business, if the cut is sufficient, oil prices will rise. If OPEC’s strategy is to increase prices we may get even more cuts to outweigh US production increases.
Here I give you the Norwegian performing Oil company AkerBP. The best OBX -Norwegian largest companies- this year. It has even outperformed the large salmon stocks.
If the oil price starts to escalate be sure to be invested. My advice will be similar to when I told you to buy in if the market started rallying around the US Presidential election. Be sure to jump in if the oil stocks starts running.