Oil prices have been depressed for two years, and the falling price has pushed some oil stocks below $1 per share, making them penny stocks. However, the International Energy Agency has predicted an end to the world oil oversupply in 2017, and OPEC has entered into two agreements to limit production levels. These developments have pushed oil above $50 per barrel.
The Energy Information Administration (EIA) has issued a forecast for oil prices of $52 to $53 per barrel throughout 2017. If that prediction holds true, some beaten-down oil stocks may rise above the $1-per-share mark.
The fact that these low-priced energy stocks have survived the oil slump may speak to their resilience. They were chosen based on their longevity and potential to profit from higher oil prices, as well as the EIA’s prediction for higher natural gas prices through 2017. All figures are current as of February 27, 2017.