Buy These 3 Energy Stocks as Oil Breaks Out to Multi-Year Highs
StockNews
Published Oct 14, 2021 03:20PM ET
Updated Oct 14, 2021 04:00PM ET
Buy These 3 Energy Stocks as Oil Breaks Out to Multi-Year Highs
Rising energy demand amid the economic recovery has been driving oil prices upward. And because analysts expect the oil-price rally to continue, we think fundamentally sound energy stocks Occidental Petroleum (OXY), Continental Resources (NYSE:CLR), and Ovintiv (NYSE:OVV) should be attractive bets now. Read on.Oil prices have rallied to multi-year highs, with U.S. Crude trading at its highest level since 2014. Rising demand amid supply restraints is the driving force behind the price rally.
Furthermore, in the World Oil Outlook (WOO) report, OPEC projects that oil’s share in world energy consumption will increase to more than 31% by 2025, while 80% of the incremental demand might materialize within 2023. Also, the United States Energy Information and Administration (EIA) anticipates world energy consumption to increase by 50% over the coming 30 years and petroleum and other liquid fuels to remain the primary energy source. Given the unprecedented demand amid an ongoing supply crunch, analysts anticipate that oil prices could top $100 per barrel.
Therefore, we think fundamentally sound energy stocks Occidental Petroleum Corporation (NYSE:OXY), Continental Resources, Inc. (CLR), and Ovintiv Inc. (OVV) could be solid bets now.
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