Oil has had a massive year. WTI has risen 90% YTD. The move has come with some volatility based on many factors including supply and COVID concerns. This volatility has created profit opportunities for traders. Especially in energy stocks.
WTI is on the upswing again, WTI had a big week last week after a huge intraday jump Friday. The commodity dipped yesterday and looks to be bouncing off the $70 mark, up in pre-market futures.
Many analysts believe oil prices will continue to rise based on:
- Increasing demand for oil and natural gas as the world economy recovers from the COVID-19 slowdown.
- Hurricane fallout causing disruption in oil and natural gas production in the Gulf of Mexico
- Disruption of wind electricity generation in the North Sea as Europe ahead of home heating season
With the commodity’s prices set to rise, several stocks in the sector look poised to do the same. We found a few based on recent news that you might want on your radar:
Earthstone Energy Inc. (NYSE:ESTE) announced yesterday that it has increased its credit line from $550 million to $650 million. The stock is undervalued according to many analysts.
Talos Energy Inc. (NYSE:TALO) recently informed concerned investors that their Louisiana-based wells were not part of the oil release in the Gulf of Mexico from the recent hurricane, the company is, however, leading response efforts to clean and control the damage in the area.
Allied Energy Corp. (OTCMKTS:AGYP) announced last week that it achieve oil production at their Green Lease in North Texas. The company is also close to production on their Texas-based Annie Gilmer lease.
Another Texas-based oil company, NexTier Oilfield Solutions Inc. (NYSE:NEX) recently completed the acquisition of Alamo Pressure Pumping, LLC, fortifying its position as a leading Permian provider of low carbon well completion solutions.
Speaking of the Permian basin, ConocoPhillips (NYSE:COP) announced yesterday a $9.5 Billion dollar acquisition of Royal Dutch Shell’s (NYSE:RDS-A) Permian assets, in what was the day’s biggest piece of acquisition news.
