Energy stocks have had a mixed start to the year as geopolitical uncertainties and oil price fluctuations continue to impact the sector. One chief investment officer, however, sees potential in oil, citing one immediate and one long-term investment opportunity. “I think there is a great opportunity in geopolitics,” Jevons Global’s Kingsley Jones said on CNBC’s Pro Talks on Jan. 25, saying he “really likes” Petrobras, a Brazilian state oil company that trades both Brazilian stocks and those of New York. exchanges. “His [a] Deep water oil plays, very long life there. Great resources,” he said. The company, like many others in Brazil, has felt pressure from political issues, but Jones believes the situation has “stabilized” and that the stock offers “a pretty good return.” Petrobras’ annual dividend currently stands at more than 15%. Jones added that he sees Petrobras as one of the “last people left” in the oil sector, as attention shifts to more sustainable energy sources. “Europe needs petrolium. Some of these will come from Brazil,” he said. “We think there will be some players who will [be the] they’re the last ones left in the game, and we think Petrobras will be one of those.” Over the past 12 months, Petrobras shares are up about 60%. Of the 10 analysts covering the stock, eight give it a buy rating with an average price target of 39.48, giving it downside potential of about 2.4%, according to FactSet data. Long-Term Play One long-term play on Jones’ radar is Australian oil player Woodside Energy, which trades on the Australian and London stock exchanges, as well as the Nasdaq. The company announced last December that it was in talks with Australian oil company Santos about a potential merger that would create an $80 billion oil and gas giant Australians ($52 billion). in the short term,” Jones said. “But we like the long-term one.” As a shareholder, he said he wanted the deal to close “at the right price.” “If it is consolidated under one roof, in some ways, the management of that issue becomes, so to speak, simpler,” he added. Woodside Energy shares are down about 10% over the past 12 months. Of 13 analysts covering the company, eight have a buy or overweight rating on the stock at an average price target of A$33.20, giving it upside potential of about 3%, according to FactSet data.