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After Energy Information Administration data revealed a substantial decline in crude and gasoline inventories, oil prices rose last week, rebounding from early losses. Along with rising demand from reopening economies, disagreements among members of the Organization of Petroleum Exporting Countries (OPEC), Russia, and other producers over supply strategy might keep driving oil prices higher in the coming months. According to EIA’s latest short-term energy outlook, global oil consumption is expected to increase by 6% from 2020 levels in 2021 and by an additional 4% in 2022. This should bode well for energy companies.
Given this backdrop, we think energy stocks ARC Resources Ltd. (AETUF) and CONSOL Energy Inc (NYSE:CNX). (CEIX) could be solid bets now because they are poised to cash in on the overall energy sector’s growth.
