The oil price is on track to reach $100 per barrel in the next year, according to JPMorgan’s top US equity strategist Dubravko Lakos-Bujas, in 2022, energy will be the bank’s highest-conviction sector.
Crude oil prices have been rising since late fall as concerns about the omicron variant, prompting a buying spree. Oil has increased in price even more since Russian President Vladimir Putin deployed military forces into Ukraine.
JPMorgan’s strategist says energy stocks will keep rising in price
Oil prices have risen, which has boosted the value of energy stocks. JPMorgan was optimistic about them last year and remains so this year.
Here is what Dubravko Lakos-Bujas said on the matter on CNBC’s “Squawk Box” last Wednesday:
“We think that there’s a valuation argument, we think there’s a good fundamental story, improving credit profile, dividend story, and it serves as a pretty attractive hedge, against not just for inflation but in this very specific case, geopolitical risks like the one we’re facing in Russia-Ukraine.”
The price of oil rose even higher, as a result, surging towards $100 per barrel in recent days. As a result, it appears hedge funds were entrenching themselves in large-cap energy stocks in the fourth quarter, which has outperformed year-to-date.
The top strategist added that the bank is a fan of the travel industry in addition to the energy sector. Cruise lines, airlines, and leisure companies’ equities remain “filled with juice,” according to Lakos-Bujas.
