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The rebound in the oil market has investors wondering if Suncor (TSX:SU) (NYSE:SU) and other top energy stocks are good buys right now. Oil market outlook Last April, oil futures briefly traded in negative territory amid fears that global storage capacity wouldn’t be able to handle supply. The world avoided the situation and oil prices have since staged a stronger recovery than most analysts anticipated. Pundits widely predicted oil would average US$50 per barrel in 2021. At the time of writing, WTI oil trades near US$62 and shows no sign of slowing down. As COVID-19 vaccines reach the general public, governments will lift restrictions, and fuel demand should surge. Commuters will return to offices at least a few days a week. Eventually, airlines will restart cancelled routes and ramp up capacity on improved travel demand. The International Energy Agency (IEA) predicts oil demand will grow by 5.4 million barrels per day in 2021. This would be a 60% recovery of the volumes lost in 2020 due to the pandemic. OPEC+ has maintained its commitment to reduce supply to support prices. Saudi Arabia went one step further and announced an additional cut of one million barrels per day for February […]
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