The Oil Sector Is A Big Bet For Billionaire Leon Cooperman, Who Has 20% Of His Portfolio In Energy Stocks

In a statement Monday afternoon, Leon Cooperman noted that oil prices are headed higher due to a rebound in demand, which has helped boost his picks for energy stocks.

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Cooperman believes that world travel will rise again, stimulating demand, and China will be able to come out of its lockdown and resume regular trade" in his unscripted interview on Trade Algo. He added "I believe that we will need to replenish the Strategic Petroleum Reserve." He explained that 20% of his portfolio is in energy stocks.

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In a surprise announcement from OPEC+, the price of oil shot up as much as 8% on Monday as a result of the voluntary production cuts announced. The voluntary production cuts, which total 1.16 million barrels per day, will begin in May and end in 2023. Saudi Arabia said the voluntary cuts were taken as a "precautionary measure" for the sake of stabilizing the oil market.

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On Thursday, Brent crude futures jumped 5% to $83.95 a barrel on the news that the U.S. West Texas Intermediate crude futures hit their highest level since Jan. 27. West Texas Intermediate crude futures hit their highest level since Jan. 27.

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In 2022, the energy sector was able to post an outstanding performance, but this year the sector is pulling back, with the S&P 500 grouping down more than 5% this year after a strong rally last year of more than 60%.

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In a recent interview with Sotheby's, Omega Family Office CEO Mr. David Barnes said that he agreed with Goldman Sachs' head of commodities research Jeff Currie's assessment of the commodities market. Currie raised his forecast on Brent crude after OPEC+ had a mild price rise.

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Paramount Resources and Tourmaline Oil, two Canadian oil and gas producers among the most widely followed investors in the sector, are his two favorite stocks in the sector.

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According to Cooperman, Tourmaline Oil is growing at a rate of 15% each year, and they're making a lot of money with every barrel of oil they produce up here. They're generating about $2 million a day in free cash flow that goes to their shareholders.

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There has been a markdown of more than 17% in the shares of Tourmaline Oil this year, while the shares of Paramount Resources are up more than 3% this year. Both of these stocks are trading on the Toronto Stock Exchange.

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As well as Devon Energy, Cooperman also owns Pioneer Natural Resources, which are both players in the oil and gas industry.

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Cooperman maintains his cautious view of the overall market because he believes that "inappropriate" fiscal and monetary policies will cause the economy to take a severe downward turn. At the same time, Cooperman believes that the recent banking crisis will have long-running effects on the economy as a whole.