Leon Cooperman Predicts Crude Oil Will Reach $60 per Barrel
Leon Cooperman’s interview with CNBC
On Tuesday, October 24, 2017, Leon Cooperman, chair and CEO of Omega Advisors, shared his view on crude oil prices and financial stocks in an interview with CNBC’s Halftime Report.
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Leon Cooperman on crude oil movement
In September 2017, at the Delivering Alpha Conference, Cooperman said, “the solution for low oil prices is low oil prices.” In the last one year, crude oil (USO) (UCO) prices have risen nearly 20%. Oil has been in the range of $45 to $54 in the last year. Cooperman predicts crude oil will reach $60 per barrel in the near future. Improvement in global growth could increase the demand for crude oil both in developed nations (EFA) and in emerging nations (EEM) (VWO). Without improvement in the energy sector (XLE), faster global growth could prove difficult.
WPX Energy and Hess
Leon Cooperman shared his investment ideas in major upstream companies such as WPX Energy (WPX), Parsley Energy (PE), and Hess (HES). He said, “We own Hess. We own Parsley Energy…WPX Energy, the world economy is not going to grow 3 percent to 3.5 percent without the demand for energy growing.” These three upstream companies could see a strong improvement in their production levels over the next year.
In the next part of this series, we’ll analyze Leon Cooperman’s view on financial stocks.