Since oil prices continue to rise, due to OPEC+’s tight supply policy, Bank of America (NYSE:BAC) expects the commodity to hit $100 this winter on surging demand. This should bode well for fundamentally strong oil-producing companies. We think small-cap oil energy stocks such as GeoPark (NYSE:GPRK), Transportadora de Gas (TGS), Vista Oil & Gas (VIST), and Adams Resources & Energy (AE) are well-positioned to soar in the upcoming months.Brent crude jumped close to a three-year high recently, while U.S. crude prices jumped another 1.4% to $78.93 per barrel yesterday as OPEC shows no intention of increasing supply considerably. Bank of America (BAC) expects oil prices to surge to more than $100 per barrel in the upcoming winter season as demand will likely spike.
Analysts are also expecting an unprecedented spike driven by panic-buying of oil in the near term, given an expected tight supply in the winter. As the oil prices are expected to skyrocket, small-cap oil stocks with immense growth potential should benefit.
That’s why investors should consider stocks such as GeoPark Limited (GPRK), Transportadora de Gas del Sur S.A. (TGS), Vista Oil & Gas, S.A.B. de C.V. (VIST), and Adams Resources & Energy, Inc. (AE), to add to their portfolios.