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The oil and gas industry witnessed a huge surge in demand since the resumption of economic and industrial activities earlier this year. Though OPEC and its allies remain firm in their decision to continue production cuts to offset oversupply issues and recover the pre-pandemic global demand, the robust demand, tight inventories, and inflationary pressures have made the oil and natural gas prices hit multi-year highs recently.
Analysts forecast crude oil prices to hit $100/barrel in 2022. Investor rising optimism in the energy industry is evident from the Energy Select Sector SPDR ETF’s (XLE (NYSE:XLE)) 43.9% gains year-to-date, surpassing SPDR S&P 500 Trust ETF’s (SPY) 23.9% returns. The global oil and gas upstream activities market is expected to grow at a 6% CAGR and reach $4.24 billion by 2025. So, both OXY and SWN are expected to benefit.
