The depressed energy sector may provide one of the few value opportunities in a pricey stock market today. In a new report, Credit Suisse analyst Edward Westlake discussed the firm’s investment strategy among global majors and U.S. oil refiners.

When it comes to oil majors, Westlake sees relative value in European and Canadian stocks compared to their U.S. counterparts. In the near term, he believes OPEC production, global demand concerns and high inventory levels will continue to challenge a recovery. However, Credit Suisse is predicting that the oil market will eventually rebalance by the end of 2017.

In the meantime, the firm likes the risk/reward balance forConocoPhillips COP 2.38% above all other U.S. majors. However, Westlake noted ConocoPhillips will likely need a rebound on the oil market to fully realize its value potential relative to peers.

Westlake argued refiners got a bit ahead of themselves in 2015 and now much endure a period of low margins to complete the current de-stocking cycle.

“If the industry de-stocks and there is no recession then a positive case can be made…

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