Exxon has regained its competitive strength and operating momentum. This, along with a strong balance sheet and attractively valued shares, makes Exxon our best idea among US majors. Exxon has stepped up its renewable and clean energy investment program, focusing on research and development in carbon capture, clean electricity, hydrogen, and biofuels.
We expect that oil demand should pick up as travel restrictions ease starting in June, while supply should be curbed by OPEC+ and non-OPEC production cuts in 2H. Interestingly, the top 15 producers account for 77% of the global production, while the 15 top consumers absorb 69% of the global demand.