Billionaire David Tepper, who runs hedge fund Appaloosa Management, added this week another voice to the growing chorus of analysts and investors who are bullish on oil and oil stocks.

At the online Robin Hood Investors Conference, in which Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman, is also taking part, Tepper said he was long many of the oil stocks, which are the cheapest equities right now by any measure. That’s because of the public’s aversion to oil stocks as the society and investors push for Environmental, Social, and Governance (ESG) investing, Tepper said at the conference on Wednesday, Bloomberg reports.

Tepper cited Occidental Petroleum as an especially cheap stock, and he believes the shares have the potential to jump from $30 apiece now to up to $45-50 per share.

Moreover, ExxonMobil was a must-buy stock on the day on which activist investor Engine No. 1 won at the end of May board seats at the U.S. supermajor in a watershed moment for Big Oil, Tepper told the conference, according to Bloomberg. An investor demanding a change in how the biggest U.S. oil corporation plans for the future and the energy transition signals that oil supply will eventually decline, the hedge fund veteran said.  

Tepper’s Appaloosa Management increased bets on energy in the first quarter of this year, while reducing some positions in the tech sector, the billionaire told CNBC in March.

Tepper is the latest voice on the market to express bullish views on oil and oil stocks.

David Tawil, president of Maglan Capital, told Fox Business on Wednesday that “incredible demand,” inflation, and shareholder pressure on oil supermajors to drastically cut emissions could lead to an oil crisis within three years, with very high oil and gasoline prices. Oil prices are set to rise “consistently and considerably now into the end of the year,” Tawil said.

The world’s largest independent commodity traders are also bullish, not ruling out $100 oil.

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Although oil may not be headed to a new supercycle, prices still have room to rise from current levels because of a strong demand rebound and expected tightness in supply, top executives at Trafigura, Vitol, and Glencore said at the FT Commodities Global Summit earlier this week.

By Tsvetana Paraskova for

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