In a recent Reuters poll, seven of 25 strategists cited energy as their contrarian pick for 2016 or expected a surprise upside in oil and energy next year, pointing to integrated oil companies as best situated to capitalize on the turn.
Supply is still a major concern for energy investors.
“In the last five years, it has increased from just over 5 million barrels per day to nearly 9.5 million barrels. With Organization of Petroleum Exporting Country members, such as Saudi Arabia, and big non-OPEC producers, like Russia, refusing to cede market share to U.S. producers, the supply imbalance got worse through 2015,” reports CNBC.
Energy Select Sector SPDR
