Oil reached new highs overnight, Brent climbing over $79 and WTI over $74 respectively. The cause for this move is most likely due to a drop in demand with the Hurricane Ida fall out and a rise in demand as the Delta Variant COVID surge tails off.
This caused yet another major investment bank to raise its forecast for the commodity, Goldman Sachs raised its year-end price target for Brent from $80 a barrel to $90. Bank of America strategists have called for $100 barrels as well.
With this surge in price, it is an ideal time to look at oil and gas stocks that can benefit from these prices.
A few on our watchlist this week include: Magnolia Oil & Gas Corporation (NYSE:MGY), Whiting Petroleum Corporation (NYSE:WLL), Matador Resources Company (NYSE:MTDR), Allied Energy Corp. (OTCMKTS:AGYP), Devon Energy Corporation (NYSE:DVN), Marathon Oil (NYSE:MRO), and EOG Resources (NYSE:EOG).
With oil refining companies getting back to operations after getting hit by Hurricane Ida, and the world getting back to its normal activities boosted by a massive vaccination rollout, demand could continue to rise. As it currently stands the supply will not be able to meet this demand because many upstream companies slowed their drilling efforts and focused on shareholder returns.
The stocks we highlighted above are in the best position to benefit. A few are old standbys and some our new up and comers, the one thing they all have in common is that rising oil will benefit their bottom line.
