Oil prices topped $90 a barrel.
That’s a number we haven’t seen since 2014.
By summer, analysts say we could see $100 a barrel.
All thanks to tight supply with rebounding demand, and of course, geopolitical issues. OPEC hasn’t been able to increase oil output to pre-pandemic numbers. Angola, Nigeria, and Iraq are having production issues.
“The oil market is heading for simultaneously low inventories, low spare capacity and still low investment,” Morgan Stanley analysts wrote in a research note, lifting their price forecast for the summer quarter by $10 a barrel, to $100 for Brent and $97.50 for West Texas Intermediate,” as noted by The Wall Street Journal.
Bank of America says we could see West Texas Intermediate at $117 by July.
Even Evercore ISI says, “the oil rally is supported by a smorgasbord of catalysts, including a waning omicron wave; political unrest in Libya, protests in Kazakhstan, sabotage in Nigeria as well as the threat of war between Russia, a major energy producer, and Ukraine, a major energy transit hub,” as quoted by OilPrice.com.
While investors can always pick up oil ETFs, such as SPDR Energy Select Sector ETF (XLE), Invesco DB Oil Fund (DBO), and iShares Global Energy ETF (IXC), take at oil stocks that also pay out healthy dividends. For example, BP PLC (BP) carries a dividend yield of 4.21%.
Exxon Mobil (XOM) carries a dividend yield of 4.69%.
Most recently, “XOM declared a cash dividend of $0.88 per share on the Common Stock, payable on March 10, 2022 to shareholders of record of Common Stock at the close of business on February 10, 2022. This first quarter dividend is at the same level as the dividend paid in the fourth quarter of 2021. Through its dividends, the corporation has shared its success with its shareholders for more than 100 years and has increased its annual dividend payment to shareholders for 39 consecutive years,” as noted by the company.
Williams Companies Inc. (WMB) carries a yield of 5.6%. The company has paid a dividend every quarter since 2974.
