Cut your oil risk with high-quality producers

Article Excerpt

Oil prices are moving up as OPEC producers and others cut their supply because of reduced global demand due to the pandemic. We feel oil prices will continue to move higher as more countries reopen their economies. However, with oil and gas prices still at historically low levels, it’s unlikely that renewable power sources will soon replace the need for fossil fuels. We recommend investors keep some oil stocks in their portfolio as they spread their money out among the five main economic sectors (Utilities, Finance, Resources, Consumer and Manufacturing). The best way to cut your risk is with high-quality producers like the three we analyze below. Their reserves will last decades, and all of them are cutting their costs. SUNCOR ENERGY INC. $26 is still a buy for the Resources portion of your portfolio. The company (Toronto symbol SU; Conservative Growth Portfolio, Resources sector; Shares outstanding: 1.5 billion; Market cap: $39.0 billion; Price-to-sales ratio: 1.1; Dividend yield: 3.2%; TSINetwork Rating: Average; www.suncor.com) is Canada’s…

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